Mumbai based venture capital fund Nexus India Capital has invested an undisclosed amount in SEDEMAC Mechatronics, an IIT Bombay incubated startup providing energy efficiency solutions for the automotive and renewable energy markets.
SEDEMAC's product will bring up to 33% reduction in the unit cost of vehicles owing to its "model-based" technologie, a press release from Nexus said. SEDEMAC's scheme will enable an improvement in fuel efficiency at reduced hardware costs and reduced development time and costs. This investment will help SEDEMAC roll out energy efficient, low-emission products for small engines, the release added.
SEDEMAC is founded by Prof. Shashikanth Suryanarayanan, a professor from IIT Bombay who obtained his PhD at University of California, Berkeley. The company was incubated at SINE – IIT Bombay's on-campus incubator.
SEDEMAC has developed electronic control modules which increase the fuel efficiency and reduce emissions of small engines. It is working with some of the leading two wheeler companies in India and with global renewable energy firms.
Sandeep Singhal, Managing Director, Nexus India Capital Advisors, said "Nexus is seeing similar cutting edge technology initiatives at IITs and other leading institutes and is looking to build similar partnerships".
The Market Potential
Asia produces 40 million small vehicles (2/3 wheelers) every year. These vehicles typically use the conventional, low-cost, air-polluting "carburettors" as their fueling systems. It is widely acknowledged that the carburetor technology will not be in compliance with the upcoming, stricter vehicular emission regulations across Asia.
In this context, majority of the Asian 2/3 wheelers are expected to make a move from carburettors to fuel-injected Engine Management Systems in the next 5-10 years.