Pune-based Sedemac Mechatronics raises $100M from A91, Xponentia, 360 ONE Asset

Pune-based Sedemac Mechatronics, an auto parts and powertrain controls manufacturing firm, has raised $100 million led by Xponentia Capital Partners, A91 Partners, and 360 ONE Asset.

The investment values the company at $230 million.

Purpose of fundraising

Out of the total $100 million raised, approximately $9 million will be allocated to constructing a new manufacturing plant. This investment also aims to provide a financial cushion for pursuing significant growth opportunities in India, the US, and the EU.

The company's first institutional investor, Nexus Venture Partners, along with TR Capital and Montane Ventures, have exited as part of this transaction.

Who are the founders?

Sedemac Mechatronics was founded in 2007 by Shashikanth Suryanarayanan, an associate professor in the mechanical engineering department at IIT-Bombay, along with his students Pushkaraj Panse, Amit Dixit, and Manish Sharma.

The company has grown to employ over 500 people and serves major OEMs in India, including Hero Motocorp, Mahindra, and TVS. The firm operates a development centre and two manufacturing plants in India.

Sedemac's market presence

Sedemac supplies millions of controllers annually from its Pune facilities to the two- and three-wheeler markets (both ICE and EV), as well as to generator and e-bike manufacturers.

The company's products, which are critical to application control, incorporate unique control technologies developed in-house. In the fiscal year 2022-23, Sedemac posted net sales of Rs 423 crore, up from Rs 283 crore the previous year, with profits rising from Rs 3.5 crore to Rs 11 crore during the same period.