Bengaluru-based electric bike startup Oben Electric has secured ₹500 million (~$5.82 million) in a Series A funding round.

This round included participation from Ambis Holding US, Kuberan Ventures, Karimjee Group, Mission Vertical’s U.S.-based venture capital entity, Sanjeev Saraf (Polyplex) family office, Pravek Kalp family office, and other existing investors.

The company plans to use the funding to expand its existing distribution network and its Oben Care services to over 100 showrooms across 50 cities in India by the financial year 2026. It also plans to use these funds to expand its product offerings.

The company sells its flagship motorcycle, “Rorr,” from over 20 stores across 10 cities, including Bengaluru, Delhi, Jaipur, Lucknow, Pune, Kochi, and Thiruvananthapuram.

To date, Oben Electric has raised a total of ₹1.5 billion (~$17.48 million).

The company has an over 100,000-unit capacity manufacturing plant based in Jigani, Bengaluru, with a supply chain support of more than 150 vendors.

It aims to expand its offerings and distribution network, including exports, by raising $50 million in Series B funding by mid-2025.

Electric vehicle sales in India reached a record 1.95 million units in 2024, an over 27% growth year-over-year against the 1.53 million units sold in 2023. EVs accounted for 3.6% of overall automobile sales. Electric two-wheelers accounted for nearly 59% (1.15 million) of total EVs sold in 2024.

To promote India as a manufacturing destination for EVs, the government is offering international manufacturers a reduced customs duty rate of only 15% for five years if they invest at least ₹41.5 billion (~$500 million) to establish manufacturing facilities in the country.

Companies will have a three-year timeline to set up their manufacturing plants and commence commercial production in the country. During this initial phase, they must achieve a domestic value addition of at least 25%.