Battery Smart, a top battery exchange network for electric two- and three-wheelers, secured $65 million in Series B funding led by LeapFrog Investments, known for impactful investing. The funds will help expand Battery Smart’s operations to more Indian cities.
MUFG Bank, Panasonic, Ecosystem Integrity Fund, Blume Ventures, and British International Investment were among the new and returning investors who contributed to the capital round, which blended primary and secondary investments. The deal’s only financial advisor was Elluminate Capital. According to a corporate press statement, the investment would help Battery Smart expand its battery-as-a-service approach to more Indian cities. Battery Smart opened its first swap station in New Delhi in June 2020. Since then, it has expanded to 1,000 locations in 30 cities and completed over 35 million swaps. To increase its nationwide reach, the business has strategically positioned stations in Tier 1, 2, and 3 cities.
With an eco-friendly and easy driving range, Battery Smart is leading the battery exchange industry with over 45,000 active consumers. Due to its lean business approach, it can form agreements with Indian Small and Medium-sized Enterprises (SME) and use their pre-existing setups to quickly construct swap stations, which increases local entrepreneurs’ earnings.
The CEO and co-founder of Battery Smart, Pulkit Khurana, highlighted the companies’ broad experience in banking, climate strategy, and environmental sustainability while expressing his delight about the new alliances with Panasonic, LeapFrog Investments, and MUFG Bank. Additionally, he conveyed his appreciation for the continued backing provided by current investors Tiger Global, Blume Ventures, EIF, and BII.
He underlined that Battery Smart’s dedication to ensuring affordable and accessible electric mobility is strengthened by the combined support of these investors, which shows rising global confidence in battery swap as a creative solution. The extra money will help the business expand, improve its technology, and solidify its place in the market. India is predicted to have 12 million three-wheelers and 200 million two-wheelers by 2030. With the help of Battery Smart’s service, EV drivers may travel farther, save up to 40% on startup expenditures, and save time with its fast two-minute battery replacements.
Battery Smart’s service is vital to India’s move toward net-zero emissions, as stated by Nakul Zaveri, Partner and Co-Head of Climate Investment Strategy at LeapFrog Investments. It encourages the quick uptake and continued use of EVs throughout the nation and aids in the decarbonization of the electricity grid. LeapFrog’s Climate Investment Strategy, which aims to invest $500 million in businesses that can quickly develop sustainable, affordable solutions in Asia and Africa, is in line with this investment. He was excited about working with Siddharth and Pulkit to expedite India’s transition to electric vehicles.
The investment in Battery Smart is in line with MUFG’s commitment to a carbon-neutral future and support for creative solutions that promote sustainable development, according to Shashank Joshi, Deputy CEO of MUFG India. He emphasized how the tech-focused strategy of Battery Smart is consistent with MUFG’s objective of empowering people and businesses and improving India’s EV infrastructure.
The lack of a suitable infrastructure for charging EVs in India is a major barrier that worries potential buyers. The simple, affordable, and efficient solution that battery switching offers is the elimination of expensive batteries and elaborate charging arrangements. Wait times are eliminated for EV drivers because to Battery Smart’s vast network of switch stations, which guarantees that they are never more than one kilometer from a station.
