Simple Energy raises $10-million for pan-India network expansion, R&D activities

The Bengaluru-headquartered automotive firm has so far raised USD 51 million from marquee investors.(AI generated Image)

IPO-bound electric two-wheeler maker Simple Energy on Thursday said it has raised $10-million in an all-equity funding round for pan-India network expansion and reasearch and development (R&D) activities.

The latest funding round was led by existing investor Arokiaswamy Velumani, Founder of Thyrocare’s Family Office, in participation with fellow existing investors — Balamurugan Arumugam and the Haran family office, Simple Energy said. The Bengaluru-headquartered automotive firm has so far raised $51 million from marquee investors.

The company has already announced its plans to go public, as it is looking to raise USD 350-million through an IPO next fiscal, to fuel manufacturing expansion and other growth initiatives. ”This (fresh) investment will bolster our next phase of growth. It will help in making electric mobility more accessible to customers across India,” said Suhas Rajkumar, Founder and CEO of Simple Energy. Nearly 80 per cent of the capital will be directed towards expanding the company’s retail presence and building a robust dealer and service network, he said.

The remaining funds will be employed towards R&D, Rajkumar said, adding, ”with this influx, we are confident in scaling into both established and emerging markets… delivering India’s longest-range electric two-wheelers that meet the needs of Indian riders.” Founded in 2019 by Rajkumar and co-founded by Shreshth Mishra, with Ankit Gupta later joining as co-founder, the company had currently a manufacturing facility in Hosur, Tamil Nadu, with a capacity to churn out 150,000 vehicles annually.

With 53 showrooms across key cities such as Bengaluru, Goa, Pune, Vijayawada, Hyderabad, Vizag, and Kochi, the company plans to open 150 stores and 200 service centers across India this year, it said. The company recently became the first Indian OEM to commercially produce heavy rare-earth-free motors — cementing its leadership in electric mobility, Simple Energy said.