Battery Smart secures $65 mn in Series B round from LeapFrog, others

Bengaluru: Battery Smart, an electric vehicle (EV) battery swapping station provider, has raised $65 million in an extended Series B funding round led by LeapFrog Investments. The company plans to expand its battery-as-a-service network to more regions, including tier 2 and tier 3 cities.

The fundraising included both primary and secondary investments, with participation from existing investors such as MUFG Bank, Panasonic, Ecosystem Integrity Fund (EIF), Blume Ventures and British International Investment, the company said in a statement on Tuesday.

Less than a month ago, the New Delhi-based company received a $45 million capital infusion from new investors Acacia Inclusion Ltd, MUFG Bank, Blume Ventures, EIF and British International Investment.

Key Investors 

Elluminate Capital advised on the transaction. To date, the startup has secured over $100 million from key investors, including Tiger Global.

Shashank Joshi, deputy chief executive of MUFG India, said Battery Smart’s proposition aligns with MUFG’s commitment to a zero-carbon future, and in expanding India’s EV charging infrastructure.

Founded in June 2019 by Pulkit Khurana and Siddharth Sikka, Battery Smart operates a network of over 1,000 battery swapping stations for electric two- and three-wheelers across 30 cities. It has partnered with micro, small, and medium-sized mobility enterprises, leveraging their infrastructure to set up swapping stations. 

LeapFrog Investments specialises in climate, financial services and healthcare sectors, primarily in Asia and Africa. Recently, Singapore-based Temasek had infused $500 million into its growth equity funds.

EV Traction

EVs have been gained traction in recent years, especially with government subsidies aimed at increasing adoption. According to research firm Counterpoint, EV sales are expected to rise 66% this year, after doubling in 2023, with state subsidies and supporting infrastructure driving demand nationwide.

Battery swapping stations, which allows replacement of discharged battery packs, is expected to further boost adoption by addressing range anxiety.

By 2030, EVs are projected to represent one-third of India’s passenger vehicle market, indicating a robust long-term growth trajectory for the automotive sector, according to the report.

Last week, Indian Oil Corp formed a joint venture with Sun Mobility to set up a large battery swapping network by 2030.

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Published: 11 Jun 2024, 08:19 PM IST

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