Omega Seiki Mobility and Punjab National Bank sign Rs 300 crore EV financing agreement

Omega Seiki Mobility (OSM), a Faridabad-based end to end mobility solutions provider, has signed a Rs 300 crore EV financing agreement with public sector banking major Punjab National Bank, to finance nearly 2,500 electric three-wheelers in the passenger and cargo segments annually over the next three years. 

With the PNB partnership, Uday Narang, the Founder of Omega Seiki Mobility stated that OSM intends to prioritise access to electric vehicles and localised charging infrastructure to provide cleaner and more efficient transportation options to rural communities.

Narang told Autocar Professional that the electric three-wheeler OEM has financed over 8,000 electric vehicles through a variety of public and private financiers.

"Our collaboration goes beyond numbers. It seeks to broaden the horizons of electric vehicle ownership by leveraging PNB's extensive retail distribution network to transition individuals, families, and communities to own cargo and passenger electric vehicles for positive social change, socioeconomic development, and carbon reduction," he explained.

Amitabh Rai, DGM-MSME at Punjab National Bank, stated that the bank has signed an MOU with OSM that will cover "all kinds of electric 3-wheelers, including cargo loaders," which will play a critical role in supporting the nation's sustainable development agenda.

The PNB official further stated that the bank will absorb the shared values to advance the nation's commitment to technology innovation and financial inclusiveness, paving the way for a more eco-friendly, wealthy, and inclusive India.

Omega Seiki Mobility's fund raising plans 

Talking about business plans, the way forward and investment strategies, Omega Seiki Mobility said that it has also outlined plans to raise over US$ 100 million over the next six months to a year. This will be done through a 50:50 debt-to-equity ratio, and DC Advisory has been appointed as investment advisor. Narang also explained that the company aims to more than double its market share annually, and they will be looking to ramp up production and add more capacities.

Omega Seiki Mobility currently has a 5 percent share and stands as the Number 3 electric three-wheeler player in the country. Mahindra is the market leader of 41%. is followed by Piaggio netting a 26 percent market share, as per Vahaan data.

He further explained that the aims to touch an annual turnover of more than Rs 300 crore, over the next three years and turn Ebitda-positive in FY25, discounting uncertainties over government EV subsidy policies. "Stability and continuity in policies is the key for industry to see exponential growth, as only then, investor confidence will get boosted to invest with clarity in the regulatory framework, Narang further added.