Indkal Technologies Raises Around Rs 300 Crore In 'Series A' Funding

Bengaluru-based startup, Indkal Technologies, has raised $36 million (approximately Rs 300 crore) in a funding round. The funds raised would help the company to improve their infrastructure and the products like air conditioners, televisions, washing machines and refrigerators, according to Anand Dubey, chief executive officer at Indkal Technologies.

The 'Series A' funding round was led by Mauritius-based Aries Opportunities Fund. However, the company founded in 2020, has not disclosed the valuation on which the funds were raised.

"We needed to invest in product development. Locally being able to make better products, which are more localised, are more suited for Indian consumers and their needs in consumer electronics and durables, and that became a big part of why we raised investment," said Dubey.

Indkal Technologies, which ended FY24 at around Rs 800 crore, is expanding at a fast pace and wants to set up support functions “aggressively” as distribution and service infrastructure to support the kind of growth it aspires for, he said.

"We will be utilising the funds to improve product development infrastructure. We will be setting up a large research and development infrastructure very soon, and a big part of the investment is going to go there. Along with that, we will be bulking up on distribution and service to make sure that we reach our customers with our products and then we are able to service them efficiently," he said.

In terms of growth, Dubey said, Indkal was "able to achieve certain strong metrics". "We would continue with the current growth trajectory and even try to pump it up. We are looking to get to about Rs 8,000 crore in the next two to three years in terms of growth."

Indkal is one of the largest trademark licensing companies in the consumer electronics sector in India. It manufactures consumer electronics and large appliances for some global brands like Acer and Black+decker.

It recently announced entry into the fast-growing smart wearable space and launched Wobble, its own brand of wearable and audio products.

"We want to be leaders in product management and development in the country, and that remains a big area of focus and the kind of product categories that we are operating in, they have great growth potential," said Dubey.

In the TV category, the company has had over 300% growth in the last three years each, Dubey said.

Indkal is also taking a "heavy bet" on categories such as room air-conditioners and also looking at categories like refrigerators, where it entered a month back.

(With text inputs from PTI)