New Delhi, May 20 (KNN) HTech, the recently established smartphone company licensed to sell Honor-branded handsets in India, is seeking to raise around USD 100 million from investors.

These funds will be utilised to diversify into manufacturing operations, co-create products tailored for the Indian market, and enhance customer experience, according to Madhav Sheth, Chief Executive Officer of HTech.

Sheth revealed to ET that the company has already invested USD 10 million into the business and plans to secure an additional USD 20 million within the next six months as part of the broader USD 100 million fundraising goal.

To facilitate this capital raise, HTech, where Sheth currently holds a majority stake, will dilute equity in the company. "Bringing an equity partner on board will ensure our growth trajectory is accelerated when venturing into something new," Sheth stated.

Since its inception in August 2023, HTech has launched two smartphone models spanning the mid-premium and budget segments. The company now aims to introduce six more devices by the end of 2024, targeting the rapidly growing premium segment that accounts for 20 per cent of the smartphone market volume, as per data from Counterpoint Research.

"We are preparing to launch six mid-range and premium products, with some being imported initially. However, we may locally manufacture three or four models," Sheth explained.

By the end of 2025, HTech intends to sell at least 5 million units of locally produced Honor phones in India.

To commence domestic manufacturing, HTech is engaged in discussions with electronics manufacturing services partners, with plans to initiate production of Honor devices in India from the third quarter of 2024.

"Completely imported units are unsustainable in India due to high duties. Nevertheless, to assess market fit, we will continue importing a limited number of units to gauge their alignment with Indian consumer preferences," Sheth added.

(KNN Bureau)