Oben Electric, a Bengaluru-based electric motorcycle manufacturer, has raised an additional ₹50 crore (US$6 million) in an extended series A funding round in May 2025.

This follows a previous ₹50 crore (US$6 million) series A funding raised in January 2025, bringing the total series A funding to ₹100 crore (US$11.6 million) and the overall funding to ₹200 crore (US$23.2 million)

The funding round included participation from both new and existing investors, such as Helios Holdings, Sharda family office, and Kay family.

The funds will support Oben Electric’s expansion, which includes plans to establish over 150 showrooms across more than 50 cities by FY26.

It will also help develop the new ‘O100’ platform for affordable electric motorcycles under ₹1 lakh (US$1,158) and enhance manufacturing capabilities at its Bengaluru facility.

In addition, Oben Electric plans to raise USD 30 million in a series B round later in 2025. This funding will support international expansion and increase production capacity.

Oben Electric designs and manufactures electric motorcycles and essential components in-house, including batteries and vehicle control units. Its manufacturing facility in Jigani, Bengaluru, has an annual capacity of 100,000 units and collaborates with over 150 domestic vendors.

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🔗 Source: Oben Electric

🧠 Food for thought

1️⃣ Vertical integration emerges as a key differentiator in India’s competitive EV landscape

Oben Electric’s approach of developing critical components in-house, including LFP batteries, motors, and vehicle control units, represents a strategic advantage in an industry plagued by supply chain vulnerabilities.

This in-house development strategy contrasts with many Indian EV startups that rely on imported components, particularly batteries which typically account for 40-50% of an electric vehicle’s cost 1.

The “Make in India” initiative has significantly boosted domestic EV manufacturing, with companies like Oben leveraging it to build technological self-sufficiency and reduce dependency on global supply chains 2.

Vertical integration also provides crucial quality control benefits, particularly important after safety incidents with imported batteries prompted stricter government regulations in the Indian EV sector between 2022-2024.

The 500+ member team and 150+ domestic vendor relationships further demonstrate how Oben has built manufacturing resilience at a time when many EV startups struggle with consistent production quality.

2️⃣ Electric motorcycles represent an underserved high-growth segment in India’s EV revolution

While electric scooters have seen faster adoption, the motorcycle segment remains relatively untapped despite motorcycles accounting for 63% of India’s two-wheeler market 1.

India’s electric two-wheeler market is projected to grow from $1.68 million in FY 2023 to $2.8 million by 2028, representing an 11.11% CAGR and creating substantial opportunity for early movers 1.

The government’s EV 30@30 initiative aims to increase EV market share from just 1.3% in 2023 to 30% by 2030, providing long-term policy support for companies like Oben 1.

Oben’s strategy of launching both premium products (Rorr) and more affordable options (O100 platform under ₹1 lakh) addresses different price segments in a market where cost remains a primary adoption barrier 3.

Performance metrics like the Rorr’s 175-187 km range directly address “range anxiety,” which industry reports identify as a key concern among potential electric motorcycle buyers 4.

3️⃣ Indian EV startups are maturing beyond urban-only strategies to capture nationwide market share

Oben’s expansion to 37 retail outlets across 26 cities in 13 states including Punjab, Gujarat, Madhya Pradesh, and other non-metro areas represents a shift from the urban-focused approach that characterized early EV adoption in India.

This expansion strategy targets India’s vast two-wheeler market where 70% of sales happen outside major metropolitan areas, a crucial factor for achieving meaningful scale 5.

The company’s announced plans to reach 150+ showrooms across 50+ cities by FY26 follows the playbook of successful conventional motorcycle brands that built nationwide presence to achieve volume growth.

By strengthening after-sales service networks alongside retail expansion, Oben is addressing a critical barrier to EV adoption in smaller cities where service infrastructure has historically been limited 3.

This geographic expansion strategy aligns with broader industry trends where EV manufacturers are moving beyond tech-forward early adopters in major cities to reach mainstream consumers across India’s diverse market regions.

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