Lava MD Sunil Raina, CFO Rajesh Sethi Resign As Smartphone Maker Eyes ₹600 Crore Fundraise: Report

Lava International Managing Director Sunil Raina and Chief Financial Officer Rajesh Sethi have resigned as the domestic smartphone manufacturer explores fresh funding and expansion opportunities, Moneycontrol reported.

Both executives are serving their notice periods and are expected to remain with the company until December. Raina reportedly plans to pursue opportunities outside Lava.

The departures follow former Chief Manufacturing Officer Sanjeev Agarwal's move to memory chipmaker Micron in July.

Lava Explores ₹600 Crore Fundraise

Raina became managing director in 2023 after Lava co-founder Hari Om Rai was arrested by the Enforcement Directorate in a money-laundering case.

Having joined Lava in 2010 as vice-president and chief marketing officer, Raina subsequently held several senior positions.

The leadership changes come as Lava seeks capital to expand its smartphone operations and strengthen competitiveness.

Promoters of Dixon Technologies and Amber Enterprises are discussing potential investments in Lava in their personal capacities.

The company is separately exploring a ₹500-600 crore fundraise to support expansion and potentially restructure part of its debt. Additional capital could help Lava develop its smartphone portfolio and increase manufacturing capacity.

Govt Incentives, Affordable Smartphones Offer Growth Opportunities

Lava is expected to apply for the Centre's ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS), notified in August.

The programme offers sales-linked incentives and additional benefits for domestic component sourcing, design and research investments.

The company is targeting opportunities in smartphones priced below ₹20,000 as Chinese manufacturers increasingly focus on higher-priced devices amid rising component costs.

Lava also secured half of the Uttar Pradesh government's tender for 25 lakh tablets, with Acer winning the remaining portion.

The state allocated ₹2,374.60 crore to procure and distribute tablets free to eligible youth. Despite its limited market share, Lava has reported improving smartphone sales.