SEDEMAC IPO: Deeptech Success in India’s Auto Sector

Pune-based SEDEMAC Mechatronics’ recent IPO signals a shift in India’s startup narrative, spotlighting deeptech manufacturing’s viability. The IPO, which occurred on March 11, challenges the prevailing focus on consumer giants and e-commerce in the Indian market.

Founded in 2007 by Shashikanth Suryanarayanan, SEDEMAC specializes in advanced electronic control units (ECUs), motor controllers, and powertrain solutions for automobiles and power generators. The company’s technology acts as the decision-making layer for these applications, enabling real-time machine responses. This IPO marks a significant milestone for deeptech, which has historically received less than 1% of India’s total startup funding between 2014 and 2025.

SEDEMAC’s focus on the automotive ecosystem, where OEMs operate primarily as assemblers, has been crucial. By building machine intelligence for modern-day systems, SEDEMAC has become an influential partner for OEMs in India, including TVS, Bajaj Auto, and Hero MotoCorp. The company’s technology is difficult for OEMs to replace, giving SEDEMAC a competitive edge over global component giants.

The company reported a 20% EBITDA margin in the first nine months of FY26. Revenue grew from ₹540 Cr in FY24 to approximately ₹640 Cr in FY25, and further to nearly ₹770 Cr in the first nine months of FY26. A91 Partners and Nandan Nilekani’s family office (NRJN Family Trust) realized substantial returns from the IPO, while retaining significant stakes.

Looking ahead, SEDEMAC faces the challenge of transitioning to electric vehicles (EVs) and expanding into adjacent sectors such as industrial applications and power tools. The company’s ability to adapt its IP-driven approach to the EV space will be a key factor in sustaining its growth.