EKA Secures Second Tranche of $100 Million Investment

Preeti Bali / 8:20 am / June 24, 2024

EKA (Pinnacle Mobility Solutions), a leading manufacturer of electric commercial vehicles (EVs), has secured a second tranche of investment from Japanese trading giant Mitsui & Co. Ltd. This funding injection will empower EKA to significantly enhance its manufacturing capabilities and accelerate the development of innovative new EV solutions.

Building on a Long-Term Partnership

This latest investment builds upon a long-term collaborative agreement established in December 2023. The agreement, which includes joint investments of $100 million spread across multiple phases, equity participation, and technological cooperation, involves EKA, Mitsui, and Dutch technology and manufacturing leader VDL Groep. The partnership aims to solidify EKA’s position as a prominent global original equipment manufacturer (OEM) within the Indian market.

Collaboration for Success

Under the terms of the partnership, EKA will receive ongoing financial support from Mitsui alongside vital technological expertise and an equity stake from VDL Groep. This collaboration leverages VDL Group’s extensive experience as a global leader in the production of electric buses, trucks, and coaches.

Investing in a Sustainable Future

“This continued investment signifies a strong commitment to our growth trajectory,” stated Sudhir Mehta, Founder of EKA. “The fresh funds will enable us to deliver innovative EV solutions to market at a faster pace, further propelling our mission to establish a sustainable and environmentally friendly transportation ecosystem.”

Strategic Allocation of Funds

EKA plans to strategically utilize the funds for capital and working capital expenditures. A significant portion will be directed towards expanding their manufacturing capacity and bolstering product development initiatives.

Confidence in EKA’s Potential

“EKA Versatility has reliably exhibited surprising development and a promise to advancement inside the EV area,” remarked Hiroshi Takeuchi, Delegate Senior supervisor of Mitsui’s Portability Specialty Unit 1. “We are excited to add to their proceeded with progress. We imagine utilizing Mitsui’s worldwide organization to open entryways for sending out EKA’s cutthroat items to global business sectors.”

EKA’s Market Position

Headquartered in Pune, India, EKA specializes in the development and production of electric commercial vehicles. Their product portfolio encompasses electric buses in various sizes (7 meters, 9 meters, and 12 meters), intercity coaches, and electric light commercial vehicles.

A Surge in Demand

EKA’s order book has witnessed a dramatic surge, with over 1,000 electric buses and 5,000 electric light commercial vehicles currently on order. The company anticipates a further increase in electric bus orders in the coming months.

Fostering Innovation and Growth

The initial investment from Mitsui earlier this year played a pivotal role in establishing a leading electric commercial vehicle R&D center in India. This center focuses on designing cutting-edge products and spearheading EKA’s export endeavors.

The Road Ahead

This follow-up investment serves a multi-pronged purpose. It aims to elevate EKA’s production capacity, expedite the development of new products, broaden their market reach, and provide additional financial resources. This influx of capital will fortify EKA’s financial standing, enhance their supply chain, and empower their efforts to capture a larger share of the market.

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