Battery Smart Charges Up $45 Million in Fresh Funding

Battery Smart, a prominent player in the battery technology space, has successfully secured $45 million in a new funding round. This latest investment, led by Acacia Inclusion Limited, will fuel the company’s growth ambitions. MUFG Bank, Blume Ventures, The Ecosystem Integrity Fund, and British International Investment also participated in the round.

Investment Breakdown and Shifting Shareholder Landscape

The company issued over 87,000 Series B CCPS to raise the capital, with Acacia Inclusion emerging as the frontrunner by contributing Rs 124.75 crore. MUFG Bank and Blume Ventures followed closely behind with investments of Rs 93.56 crore and Rs 41.58 crore, respectively. The Ecosystem Integrity Fund and a consortium of British International Investment and PC-SBI Kurashi Visionary Fund also made significant contributions.

Following this funding round, Blume Ventures, an early backer of Battery Smart, retains a significant stake of 14.43%. Meanwhile, Acacia Inclusion and The Ecosystem Integrity Fund hold sizable shares of 9.83% and 6.56%, respectively.

Valuation Soars on Growth Trajectory

Industry estimates suggest Battery Smart secured this funding at a valuation of approximately Rs 2,830 crore ($341 million). This represents a substantial 62.5% increase compared to the company’s $210 million valuation during its pre-Series B round last year. It’s important to note that this funding round might still be ongoing, with the potential for Battery Smart to raise additional capital and potentially influence the final valuation.

Building on Early Success

This latest investment builds upon Battery Smart’s impressive funding history. In July 2023, the company secured $33 million in a pre-Series B round. With this new infusion of capital, Battery Smart has secured over $120 million in total funding to date. Notable past investors include Tiger Global, Orios Venture Partners, Shimshon Finance, and Baring Private Equity.

Innovation in Battery Swapping Technology

Battery Smart offers a unique solution for electric two-wheeler and three-wheeler owners. They provide advanced lithium-ion batteries that can be quickly swapped for fully charged ones at their network of swapping stations. This eliminates the need for lengthy charging times and reduces upfront battery costs through their battery-as-a-service (BaaS) model.

Expansion and Market Landscape

Since its inception, Battery Smart has established a robust network of over 1,000 swapping stations across 30 Indian cities. These stations cater to customers in Haryana, NCR, Karnataka, Rajasthan, Telangana, Uttar Pradesh, and Maharashtra. The company boasts over 35 million battery swaps completed to date.

While financials for FY24 are yet to be reported, Battery Smart witnessed significant growth in FY23. Revenue surged to Rs 55.8 crore, reflecting a seven-fold increase compared to the previous fiscal year. However, losses also increased, jumping to Rs 64.51 crore from Rs 13.08 crore in FY22.

Battery Smart operates in a competitive landscape. Key players in the market include Sun Mobility, Bounce Infinity, Lithium Power, Lohum, Chargeup, and RACEnergy.