Pune-based Sedemac Mechatronics, an auto parts and powertrain controls manufacturer, has announced raising $100 million in a funding round led by Xponentia Capital Partners, A91 Partners, and 360 ONE Asset.
The investment values the company at $230 million, according to a statement released on May 30. Moneycontrol first reported Sedemac’s $100 million fundraise in April.
A portion of the funding, approximately $9 million, will be allocated to building a new manufacturing plant. Additionally, the capital will provide a financial cushion to support significant growth prospects in India, the US, and the EU.
This investment has facilitated the complete exit of Sedemac’s first institutional investor, Nexus Venture Partners, as well as full exits of TR Capital and Montane Ventures. Secondary transactions have collectively infused $9 million into the company’s coffers, raising its valuation to $260 million.
Sedemac Mechatronics, which stands for “Separating Decision Making from Actuation,” was founded in 2007 by Shashikanth Suryanarayanan and his students Pushkaraj Panse, Amit Dixit, and Manish Sharma. The firm was incubated in a lab at the Indian Institute of Technology-Bombay (IIT-B).
Shashikanth Suryanarayanan, an associate professor in the mechanical engineering department at IIT-Bombay, completed his PhD from the University of California, Berkeley, and worked in the US for six years before returning to India in 2004.
Sedemac manufactures critical components for generating power in automotive vehicles, catering to small engines, electric vehicles, and e-bikes. The company employs over 500 people and serves top OEMs in India, including Hero Motocorp, Mahindra, and TVS. It operates a development center and two manufacturing plants in India.
In 2017, Sedemac raised around $7.5 million in funding from Infosys co-founder Nandan Nilekani, Nexus Venture Partners, and India Innovation Fund. In 2018, the company reportedly raised around $8 million from Iron Pillar.
“We are very excited to join Sedemac’s journey of technology-led innovation and excellence. The Sedemac leadership is building an extraordinary business, leveraging India’s engineering talent to create IP catering to large markets,” said Bhavya Kapoor, MD at Xponentia Capital.
Source: Moneycontrol
