EV components maker Entuple e-mobility to raise $3.5 million of equity capital

Industry:    September, 2020

Bangalore-based electric vehicle (EV) components maker Entuple E-mobility is in talks with several investors to raise $3-3.5 million (Rs 22-25 crore) of equity capital to fund further growth.

The capital will be used to set up the company’s upcoming 150,000-unit annual capacity electric powertrain manufacturing plant, upgrading its existing manufacturing facility, for R&D and towards operational expenses, Rakesh Mishra, chief executive of Entuple told ET. The company also plans to make EV fast chargers by next year.

The company is in discussion with both strategic investors and venture capital funds and hopes to conclude the fundraising soon, Mishra said.

Explaining the rationale behind starting a company to supply components to a nascent and low-volume industry like electric vehicles, Mishra said that volumes will only take off when the cost of production for EVs goes down with higher localisation.

“Currently all EV manufacturers are importing several key components. They need reliable local suppliers. While demand may not be that high right now, that is a risk that we need to take as a business,” he said. “When volumes go up, it would be too late for a startup like us to enter the business as established players would look to enter.”

Entuple is in talks with over 30 EV companies, which include large auto manufacturers, startups, systems integrators, and specialty vehicle makers, the chief executive said.

“With one in four EV motors sourced from China, many local manufacturers are gearing up to invest in localisation,” said Makshi Shah, senior automotive and mobility consultant at business research and advisory firm Aranca. “We expect 15–20 such specialized motor players to start local production over the next 2–3 years.”

The company’s new manufacturing facility in Bangalore will make five different types of hub-mounted motors and controllers primarily for electric two-wheelers. The motors are in various stages of user testing and validation, according to Mishra, post which they will undergo homologation at government prescribed testing facilities before going into production.

The company also plans to upgrade its existing facility that makes frame-mounted motors, taking the capacity up from about 6,000 powertrains a year to 96,000 units. These powertrains would be supplied to electric three- and four-wheeler makers.

“The plan is to source all the components like stator stampings, motor core, and electronics locally and minimise dependence on imports,” Mishra said over the phone. To reduce dependence on components like magnets, which are completely imported, the company is working on alternate designs that work without magnets.