Battery Smart, a battery-swapping network for electric vehicles (EVs), has raised $25 million as a part of its Series A funding led by Tiger Global Management, the company said on June 27. Existing investors Blume Ventures and Orios Ventures also participated in the funding round.
Battery Smart will use the funds to expand to new territories, strengthen its battery-assignment technology and build team to continue scaling operations, the New Delhi-based startup said in a statement.
"With this investment, we are focused on bringing our offerings to even more EV users pan-India, by increasing the number of swap stations and continuing to partner with OEMs (original equipment makers) and fleet operators. We are also looking to strengthen our technology for effective network planning and make key hires in our growing team," Battery Smart co-founder Pulkit Khurana said.
Battery Smart operates a "battery-as-a-service model" that enables interoperable battery swapping for EVs. It claims to swap batteries in under two minutes and says its technology reduces the up-front investment borne by a consumer by up to 60 percent.
Battery is perhaps the most expensive component, accounting for 40-60 percent of the vehicle price.
Battery Smart's data-driven methodology and battery telematics have enabled it to complete over 2.5 million battery swaps, so far, the company said. It had powered 80 million emission-free kilometers so far.
“Battery Smart’s tech-powered battery-swapping network offers an innovative solution to power India’s rapid adoption of EVs for food delivery and e-commerce. We are excited to partner with Pulkit and Siddharth as they rapidly expand their footprint in key markets,” Connie Lee, Partner, Tiger Global, said.
Battery Smart's fundraise comes a month after NITI Aayog published a draft battery-swapping policy, suggesting that infrastructure and EV financing would continue to get heightened government attention.
While details of the interoperability standards are yet to be formulated, the draft policy highlighted key areas and the minimum technical and operational requirements needed to ensure the safe and widespread use of the battery technology.
Battery Smart said it was betting on the battery swapping market in India, which had strong growth prospects, with electric two and three-wheelers expected to contribute up to 30 percent of first- and last-mile vehicle sales by 2027.
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