EV startup Okinawa receives a shot in the arm, raises Rs 60 Cr
The fundraise comes as the company looks to navigate funding troubles, thinning market share, and plunging revenues after being sent notices by the government for misusing subsidies given to EV-makers.
Troubled electric vehicle manufacturer Okinawa Autotec has raised Rs 60 crore from Dhruv Khush Business Ventures as it looks to wade out of funding woes and regulatory scrutiny for flouting subsidies.
According to a Registrar of Companies (RoC) filing, the company allotted 23,51,000 equity shares at a face value of Rs 10 at a premium of Rs 245.21.
Founded in 2015 by Jeetender Sharma and Rupali Sharma, the company competes with EV-makers like Ola Electric and Bajaj Auto.
The company, which was initially eligible for the Indian government’s Electric Mobility Promotion Scheme (EMPS) and the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, was later found to be importing parts and not sourcing locally, which were the requirements for OEMs to continue to receive these subsidies.
Okinawa contested the notices sent by the government. According to a court filing, its counsel argued that it has been unable to produce its vehicles “due to the lack of funds” and that its cash flow had come to a standstill.
The company was instructed to pay Rs 116.84 crore, which was disbursed under the scheme by the Ministry of Heavy Industries.
Additionally, former employees of the company had alleged that it had not paid them salaries, and its dealers reported faulty vehicle deliveries. YourStory had reported on this matter in August last year.
According to data website Tracxn, Okinawa Scooters reported a revenue of Rs 182.2 crore in FY24 compared to Rs 1,143.8 crore in FY23.
Despite the plunge in revenues, the company managed to reel losses to Rs 52.1 crore in FY24 compared to Rs 81.7 crore in FY23.