Orissa-based Start-up Eeve India Plans to Acquires $10-12 Million to Expand Capacity
Eeve India, an electric two-wheeler manufacturer located in Orissa, would invest its own money to treble production capacity in five years while also planning a series of launches for next year.
The start-up intends to acquire $10-12 million from internal accruals to help fund its manufacturing expansion plans, which will see capacity double to 2 million units per year.
Eeve India is one of a number of electric vehicle manufacturers, including Ather Energy, Hero Electric, Ola Electric, Ampere Vehicles, and Okinawa that are trying to dramatically increase their production capacity to meet increased demand.
Eeve India's co-founder and director, Harsh Vardhan Didwania, said, “the target is to run our existing capacity at the full level which will generate enough cash flow to help power the next phase of expansion. Whenever required we will go to the financial markets but as of now, we are confident that we will be able to meet this requirement through our internal resources. We would need $10-12 million to increase the capacity.”
Eeve India was in talks with venture capitalists at the start of the current fiscal year to acquire finance for expansion. The negotiations, however, broke through due to disagreements over valuation and contract terms.
Didwania further said, “we were looking at venture capital funding but due to issues with regards to valuations and terms of agreement we decided against it.”
With a launch date of December 14, Eeve will enter the high-speed two-wheeler sector. The company will release an electric scooter with a range of 120-130 kilometres and a top speed of 55-60 kilometres per hour, thanks to its swappable battery technology.
The company sells six models, all of which are designated as low-speed vehicles and hence do not qualify for subsidies under the FAME-2 plan (Faster Adoption and Manufacturing of Electric Vehicles).
He said, “next financial year we will be upgrading all our products to the high-speed category. By April, we should be able to get the FAME-2 subsidy on the new model.”
In the last two years, Eeve India has sold over 12,000 units, including the period during which the pandemic and shutdown occurred. Until the end of November, the company has sold 6,000 units in the current fiscal year. The company expects to sell another 6,000 units before March 31, 2022.
Didwania underlined, “we are targeting sales of not less than 100,000 units next financial year because of the kind of traction we are getting and the way the industry is growing. We are confident that next year the market will become even more lucrative.”
The start-up intends to acquire $10-12 million from internal accruals to help fund its manufacturing expansion plans, which will see capacity double to 2 million units per year.
Eeve India is one of a number of electric vehicle manufacturers, including Ather Energy, Hero Electric, Ola Electric, Ampere Vehicles, and Okinawa that are trying to dramatically increase their production capacity to meet increased demand.
Eeve India's co-founder and director, Harsh Vardhan Didwania, said, “the target is to run our existing capacity at the full level which will generate enough cash flow to help power the next phase of expansion. Whenever required we will go to the financial markets but as of now, we are confident that we will be able to meet this requirement through our internal resources. We would need $10-12 million to increase the capacity.”
Eeve India was in talks with venture capitalists at the start of the current fiscal year to acquire finance for expansion. The negotiations, however, broke through due to disagreements over valuation and contract terms.
Didwania further said, “we were looking at venture capital funding but due to issues with regards to valuations and terms of agreement we decided against it.”
With a launch date of December 14, Eeve will enter the high-speed two-wheeler sector. The company will release an electric scooter with a range of 120-130 kilometres and a top speed of 55-60 kilometres per hour, thanks to its swappable battery technology.
The company sells six models, all of which are designated as low-speed vehicles and hence do not qualify for subsidies under the FAME-2 plan (Faster Adoption and Manufacturing of Electric Vehicles).
He said, “next financial year we will be upgrading all our products to the high-speed category. By April, we should be able to get the FAME-2 subsidy on the new model.”
In the last two years, Eeve India has sold over 12,000 units, including the period during which the pandemic and shutdown occurred. Until the end of November, the company has sold 6,000 units in the current fiscal year. The company expects to sell another 6,000 units before March 31, 2022.
Didwania underlined, “we are targeting sales of not less than 100,000 units next financial year because of the kind of traction we are getting and the way the industry is growing. We are confident that next year the market will become even more lucrative.”
