For Oben, IPO Size, Not Timing, Is the Bigger Question: Madhumita Agrawal

Oben Electric is eyeing a public listing in the coming years, but for the Bengaluru-based EV motorcycle maker, the bigger question is not when to go public, but how large a business it can build before that.

“The question is not whether we can go for an IPO, but how big we want to build the company before that,” Madhumita Agrawal, Founder and CEO, Oben Electric, told Autocar Professional. “IPO is a natural path to unlock value, but it is a new beginning, not an end goal.” The company indicated that an IPO could be at least four years away, with its current focus firmly on scaling operations, improving margins and expanding its market footprint.

Integration, Cost Discipline at Core

A key pillar of Oben’s strategy is vertical integration, with the company developing critical components such as battery, motor, battery management system (BMS), display and software in-house.

This strategy focuses on enhancing cost efficiency while retaining control over technology in an EV ecosystem that is still evolving. The company has already achieved contribution margin break-even, a milestone it attributes to tight cost discipline and its integrated approach.

“We are working across more than 400 components and continuously optimising costs. Either you optimise at that level or you build in-house to remove supplier margins,” Agrawal said. Going forward, profitability is expected to be driven by further bill-of-material optimisation and economies of scale as volumes increase, with the company targeting overall profitability over the next three years.

Dealership Expansion, Rural Push

Alongside cost control, Oben is aggressively expanding its distribution network to drive scale. The company currently operates around 150 retail outlets across 18 states and plans to scale this up to 350 stores within the current financial year.

A significant part of this expansion is focused on Tier 3 and Tier 4 markets, which the company sees as critical to the next phase of EV adoption. Oben has already entered 40 to 45 smaller cities, with early traction exceeding expectations. “Some of these markets surprised us. The buying capacity, interest and understanding of EVs are clearly there. These are highly aspirational consumers,” Agrawal said.

The company expects Tier 3 and Tier 4 markets to contribute around 20–30% of its volumes going forward, supported by a broader product portfolio, including its newly launched EVO electric motorcycle.

She added that service infrastructure will be key to winning in these markets. “Product gives entry into the market, but service keeps you in the market. For smaller towns, trust and service accessibility are critical.”

Tech, Funding To Power Next Phase

Technology remains another core differentiator for Oben, with a fully in-house software stack and increasing focus on AI-led features. The company’s latest product introduces features such as Smart IQ mode, designed to adapt to rider behaviour and improve efficiency. “Control over technology is critical if you want to deliver a consistent customer experience and stay competitive in the long term,” Agrawal said.

To support its expansion, Oben is preparing for its next round of funding, with a Series B expected within the current year. The company has raised around ₹300 crore so far and continues to invest in product development, manufacturing and distribution. “Automotive is a capital-intensive business with long gestation cycles. Continuous funding is essential until you reach scale and profitability,” Agrawal said.

With profitability targeted over the next three years and distribution rapidly expanding, Oben sees the IPO as a logical next step once scale, margins and market presence are firmly established.