Battery Smart Secures $21 Million for Electric Two and Three Wheelers

Battery Smart, a key player in the battery-swapping network for electric two and three wheelers, has successfully raised $21 million in an extension of its Series B funding round. This funding was led by Rising Tide Energy, with significant participation from the Asia Climate Fund and others.

Funding Details

The board of Battery Smart has approved a special resolution to issue 33,192 Series B1 CCPS at an issue price of Rs 54,407 each, aiming to generate funds amounting to Rs 180.5 crore, equivalent to $21 million, as revealed in their regulatory filing accessed from the Registrar of Companies (RoC).

Investments Breakdown

The major contributor in this funding round, Rising Tide Energy, invested $21 million, followed closely by a $6 million contribution from the Asia Climate Fund. Additional investments came from the Ecosystem Integrity Fund and Acacia Inclusion Limited based in Mauritius.

Utilisation of Funds

The funding will be allocated for business expansion, capital expenditures, and general corporate activities, as highlighted in the company’s filings. Reports indicate that the overall size of the company’s extended Series B round could reach $29 million, although current filings only reflect $21 million, with further amounts anticipated later.

Valuation Insights

According to estimates from Startup Superb, the new funding values Battery Smart at $450 million, indicating an increase of over 32% from its initial tranche valuation of $340 million during the Series B round.

Innovative Battery Solutions

Battery Smart offers advanced lithium-ion batteries specifically designed for electric two and three-wheelers. Their quick-swapping solution allows customers to easily exchange batteries at any of their designated swapping stations. The company’s battery-as-a-service (BaaS) model is particularly beneficial for gig workers, as it mitigates the high initial costs associated with electric vehicles.

Funding History

To date, Battery Smart has successfully raised around $170 million, including a notable $65 million in a Series B round led by MUFG Bank, Panasonic, Blume Ventures, and British International Investment (BII) in the previous year.

Financial Performance

Although Battery Smart has not yet released its financial data for FY25, sources indicate a significant threefold increase in revenue, with figures rising to Rs 164 crore in FY24 from Rs 56 crore in FY23. Conversely, losses expanded by 2.3 times to Rs 140 crore during the same period.