According to HOP Electric Mobility, the company’s founder and CEO Ketan Mehta, the company plan to invest as much as Rs 200 crore over the next year in new products, charging infrastructure, and additional production capacity.
On Monday, the startup launched the high-speed electric motorbike HOP OXO at a starting price of Rs 1.25 lakh. It is now establishing an electric vehicle park in Neemrana, Rajasthan, with its component suppliers.
Mehta stated that “Cumulatively, we have invested around Rs 50 crore in the business so far and we are ready to invest up to Rs 200 crore in the next 12 months.”
These new investments will be used to set up a charging network for company products. This network will then be open to other brands.
He said that the investments will be used to purchase new products such as upgrading HOP’s low-speed electric scooters to high-speed ones, and also for the EV park, which will have a new production unit.
Neemrana’s new plant will be able to produce 5 lakh units annually. The plant’s first phase is expected to become operational in mid-2023. HOP Electric Mobility owns a Jaipur manufacturing unit with a capacity to produce 50,000 units annually.
“In terms of capacity, we can do up 1.2 lakh units per year,” Mehta stated that this should be enough to supply both the scooters and the motorcycles for the next few months.
He said that the EV park was being developed at Neemrana Rajasthan, which covers 60 acres. It is a goal to create an EV ecosystem where all components are manufactured in the same place.
We and our suppliers and partners will make use of the 60 acres. He said that they would allocate the land to their partners for them to also set up their units.
HOP, its suppliers and skilled manufacturers will jointly invest total in this EV park.
Mehta answered a question about funding and said that the company would be seeking external funding through Series A rounds. It has already raised USD 2.6 million of the USD 10 million.
Mehta stated that “we will be closing down the balance of fundraising by the end of the financial year.”
The new electric bike HOP OXO, powered by a 3.75KWh battery pack and capable of travelling 150km per charge, is now available. The company stated that it can be charged in just 4 hours at any 16 Amp socket, with 0 to 80% charging.
The OXO and OXO-X versions are available in two price ranges: Rs 1.25 lakh and R 1.4 lakh respectively. Other models available by the company include HOP LYF low-speed electric scooters and HOP LEO, which retail at Rs 65,500, and Rs 72,500, respective.