Vajram Electric, an arm of EV rental services operator eBikeGo, on Wednesday announced plans to raise USD 5 million in equity to fuel its expansion plans, which include scaling up production lines, modernising the existing infrastructure besides technology integration. The company also said it is also looking at entering into contract manufacturing for other electric vehicle makers as part of its diversification plans.

Vajram Electric's expansion comes at an opportune time when international automotive companies are actively looking to diversify their supply chains and enhance production capacity to meet the surging demand for EVs, it stated.

Set up in 2022, the Mumbai-based company is into manufacturing of two and three-wheelers along with e-cycles, catering to both urban and rural markets. contributing to a sustainable future.

"Vajram Electric is all set to raise funds to the tune of USD 5 million in equity to drive its expansion plans," Vajram Electric said.

This would be the second fundraise for the company with a USD 3 million funding in equity secured earlier, it said. The fresh capital will be utilised to enhance its production capacity and modernise its manufacturing facility to meet the rapidly growing demand for EVs both domestically and internationally, Vajram said.

"Our goal is to become a key player in the global EV ecosystem. With this expansion, we will not only increase our capacity but also deliver innovative, high-quality products that meet the evolving needs of our clients. We are committed to advancing electric mobility solutions that are sustainable, efficient, and technologically superior," said Chandra Mouli, CEO of Vajram Electric.

Vajram Electric said it is focused on expanding its portfolio through the introduction of multiple innovations like electric trikes, e-cycles, among others, within the EV segment, it said.

Additionally, Vajram Electric will begin offering contract manufacturing services to other EV businesses, further diversifying its market reach, the company added.