TSUYO Manufacturing Secures INR 40 Cr Pre-Series A Funding Led by Avaana Capital for EV Component Expansion

TSUYO Manufacturing, a provider of electric vehicle (EV) powertrain solutions, has successfully secured INR 40 Crore (around $4.5 million) in its pre-Series A funding round, with Avaana Capital leading the investment. This capital infusion is earmarked for significant expansion, including the establishment of a new greenfield manufacturing facility, a ramp-up in research and development (R&D) activities, and scaling up innovations focused on the electrification of heavy commercial vehicles and retrofit solutions.

The new manufacturing unit will be TSUYO's third and will specialize in producing high-wattage electric motors (up to 250 kW) and transmission assemblies. It will also feature a vehicle testing track and advanced end-of-line validation systems, ensuring compliance with PM E-DRIVE and FAME standards. Concurrently, the expanded R&D center will focus on critical areas like power electronics, embedded systems, and prototype development.

Founded in 2020, TSUYO designs, develops, and manufactures electric motors, controllers, and integrated powertrain systems. The company boasts a strong client base of over 25 original equipment manufacturers (OEMs), including prominent names like Mahindra & Mahindra Limited, Eicher Motors Limited, Sonalika, and Hero MotoCorp Limited, having delivered more than 1.5 Lakh units since its inception.

Beyond its domestic ambitions, TSUYO has set its sights on international markets, planning expansion into Southeast Asia, Japan, Korea, and Europe. This funding round also comes in the context of a previous INR 100 Crore investment approval from Ramkrishna Forgings over five years, though Ramkrishna Forgings has recently been redeeming some of its optional convertible debentures in TSUYO.

Impact: This funding is crucial for TSUYO Manufacturing's growth, enabling it to enhance production capacity and technological capabilities. It supports India's broader push towards EV adoption and localization of component manufacturing, potentially reducing reliance on imports and strengthening the domestic EV ecosystem. The expansion into new markets could also boost India's export potential in the EV sector. Impact Rating: 7/10

Difficult Terms Explained: Greenfield manufacturing facility: A new manufacturing plant built from scratch on an undeveloped site. R&D (Research and Development): Activities focused on innovation, discovery, and product development. High-wattage electric motors: Electric motors capable of producing a large amount of power. Transmission assemblies: The system that transmits power from the electric motor to the vehicle's wheels. OEMs (Original Equipment Manufacturers): Companies that manufacture products and components used in other companies' final products. PM E-DRIVE and FAME standards: Government initiatives and standards in India aimed at promoting electric mobility. Power electronics: Electronic systems that control and convert electrical power, essential for EV performance and efficiency. Embedded systems: Specialized computer systems designed for a specific function within a larger mechanical or electrical system, such as in an EV's controller. Prototype development: The process of creating an early model or sample of a product to test its design and functionality. Optional Convertible Debentures (OCDs): A type of debt security that can be converted into equity shares under certain conditions. Localization: The process of producing goods or components within a country rather than importing them.