July 19, 2024

Indkal Raises $36M to Fuel India’s Electronics Manufacturing Growth


Indkal Technologies, a Bengaluru-based consumer electronics startup, has secured $36 million (approximately INR 300 crore) in its maiden funding round, led by Aries Opportunities Fund, a Mauritius-based investment firm. The Series A round also saw participation from undisclosed strategic investors.

The startup, founded in 2020 by Anand Dubey, former chief executive of Compaq Television Business, plans to utilize the fresh capital to expand its product portfolio, bolster its sales and service network, and establish a research and development hub to support product development infrastructure. Indkal operates as a trademark licensing company, manufacturing televisions, washing machines, air conditioners, and refrigerators for well-known brands such as Acer and Black & Decker.

Despite being bootstrapped until this latest funding round, Indkal reported an impressive gross revenue of INR 800 crore in the financial year 2023-24 (FY24). In September 2022, the company ventured into the personal audio and wearables market with the launch of its Wobble brand, aiming to establish a presence in higher-value product categories.

This funding comes at a time when India is witnessing a surge in domestic electronics manufacturing, driven by the government’s ambitious production-linked incentive (PIL) scheme and increasing demand for products like mobile phones and TVs. Indian consumer electronics manufacturers, such as Havells, Dixon Technologies, Voltas, and Bluestar, are looking to export made-in-India products to developed markets like the US, expanding beyond their traditional focus on Asian, Middle East, and African markets.

Moreover, global tech giants like Apple and Google are shifting their production away from China due to geopolitical tensions. Apple now assembles one out of every nine iPhones in India, with $14 billion worth of iPhones assembled in the country in FY24. Google has also announced plans to start manufacturing its Pixel smartphones in India during the April-June quarter, with a target of shipping 10 lakh units by the end of the year.

The Indian government has also introduced various policies and incentives to promote domestic semiconductor manufacturing. In March, the Tata group announced plans to set up a semiconductor ATMP (assembly, testing, marking, and packaging) facility worth INR 27,000 crore in Assam. Earlier in February, Tata Electronics (TEPL) received government approval to build India’s first AI-enabled semiconductor fabrication facility in Dholera, Gujarat.

The Tata group is not the only player in the semiconductor space, with the Vedanta Group also constructing a chip foundry in Dholera. Recently, India-based SaaS MNC Zoho announced its intention to launch a commercial semiconductor manufacturing unit in Tamil Nadu. I

indkaln early 2023, US-headquartered Micron Technology revealed plans to build an INR 22,000 crore semiconductor testing and packaging plant in Sanand, Gujarat.

As the electronics manufacturing sector in India continues to grow, startups like Indkal Technologies are well-positioned to capitalize on the increasing demand and supportive government policies. With its latest funding round, Indkal is poised to expand its market presence and contribute to the growth of the domestic electronics industry.

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