In a significant development for the electric vehicle (EV) sector, Battery Smart, a leading battery-swapping service provider, has successfully raised Rs 376 crore ($45 million) in a funding round led by Acacia Inclusion Ltd. This fresh influx of capital comes as Battery Smart aims to expand its innovative battery-as-a-service model across India.
Major Investment from Acacia Inclusion and Other Investors
Acacia Inclusion Ltd led the funding round with a substantial investment of Rs 125 crore. Other notable new investors include MUFG Bank and PC-SBI Kurashi Fund, contributing Rs 94 crore and Rs 25 crore respectively. Existing investors Blume Ventures, British International Investment, and Ecosystem Integrity Fund have also increased their stakes, investing Rs 42 crore, Rs 49 crore, and Rs 42 crore respectively, according to filings with the Registrar of Companies.
The company issued 87,113 Series B compulsorily convertible preference shares to the investors at an issue price of Rs 43,203 each, reflecting the strong confidence in Battery Smart’s growth potential and market position.
Expanding Beyond the Northern Belt
Founded in 2019 by Pulkit Khurana and Siddharth Sikka, Battery Smart has made impressive strides in the EV market. Currently operating in 25 cities from Rajasthan to Eastern Uttar Pradesh, the Delhi-based company is poised to expand into major cities like Mumbai, Bengaluru, Pune, and Kolkata. This geographic expansion is part of their strategic plan to establish a nationwide network of battery-swapping stations, making EV adoption more convenient and widespread.
Innovative Battery-Swapping Solutions
Battery Smart has carved out a niche by offering two-minute battery-swapping facilities for two- and three-wheeler electric vehicles. This service has been particularly popular among commercial drivers of electric three-wheelers, who make up the majority of the company’s revenue base. The rapid, efficient battery-swapping service enables drivers to minimize downtime and maximize productivity, a crucial advantage in the commercial transport sector.
Previous Funding Success
This latest funding round follows a successful $33 million raise in July last year, which included investments from Tiger Global, Blume Ventures, Ecosystem Integrity Fund, and British International Investment. At that time, co-founder Pulkit Khurana hinted at a larger funding strategy, which has now come to fruition with the latest $45 million investment.
Future Prospects and Strategic Goals
With this substantial capital boost, Battery Smart is well-positioned to enhance its service offerings and expand its footprint across India. The company’s innovative approach to battery-swapping, combined with strong investor confidence, underscores its potential to revolutionize the EV landscape in India.
Conclusion
Battery Smart’s recent $45 million funding round, led by Acacia Inclusion Ltd, marks a significant milestone in the company’s journey. As it gears up for nationwide expansion and continues to innovate in the battery-swapping space, Battery Smart is set to play a pivotal role in accelerating the adoption of electric vehicles across India.
