The startup will use the amount for new product development, capacity expansion, and sales network.
Also, it is targeting to sell 200,000 scooters in the next two-three years, and planning to bring four new scooters this year.
In an interaction with ETAuto, Praveen Kharb, co-founder & CEO, Twenty Two Motors, said: “We are aiming to sell 200,000 scooters in the next two-three years, and planning to bring four new scooters. To achieve our target, we are seeking a fund of $20 million. We are already in talks with few investors and are close to securing the funds.”
He also said: “We will open 10 new experience centres in Delhi-NCR for product display and sales booking. And on the service part, we would be doing on-door servicing, whenever required.”
Earlier this year, the company showcased a prototype of its electric scooter named ‘Flow’, which it launched in the 2018 Auto Expo.
Priced at Rs 74,000, the Flow would be commercially available in June this year, added Khrab.
The company claimed that it aims to sell 50,000 units in the first year, which is too high for the Indian electric two-wheelers market, as the current market size is just 23,000 units.
Players like Ather, Tork and Okinawa Scooters have either launched their products or planning to launch in the segment, which will make the competition tough further.
However, the research firm Frost & Sullivan estimates sales of 1.4 million electric vehicles (EVs) in India by 2030, accounting 18 per cent of the new vehicles market, while 15 per cent for EVs, and 3 per cent for full hybrid electric vehicles.
The research firm has also predicted that the two-wheeler segment will constitute nearly 60 per cent of the electric vehicle market, with a robust growth of nearly 38 per cent by 2020.
Till now, the company has invested over $8 million in developing the production capacity and on product development.
The company’s current capacity is to manufacture 300 scooters per day, but it is producing 50 scooters per day initially.
In its pre-series A round funding, the company raised $1.6 million through Ishwar Singh, CEO, Haryana Industries. Farhaan Shabbir, former director of Harley-Davidson, also joined the investment round to strengthen the startup, he joined as a founding member.