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Tag: battery smart

  • Battery Smart Secures Extended Series B Funding, Valuation Reaches 0 Million

    Battery Smart Secures Extended Series B Funding, Valuation Reaches $450 Million



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

    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.


  • Battery Smart Sees Revenue Surge in FY24, But Losses More Than Double

    Battery Smart Sees Revenue Surge in FY24, But Losses More Than Double



    Battery Smart Reports Significant Growth in Revenue

    Battery Smart Reports Significant Revenue Growth

    Battery Smart, a leading battery-swapping network catering to electric two- and three-wheelers, has experienced a remarkable three-fold increase in revenue for the fiscal year ending March 2024. Despite this growth, the company’s losses also doubled as the Gurugram-based enterprise aggressively aimed for expansion.

    Revenue Increase for Battery Smart

    Battery Smart’s operating revenue surged by 193%, climbing to Rs 164 crore in FY24 from Rs 56 crore in FY23, according to consolidated financial statements obtained from the Registrar of Companies (RoC).

    The company specializes in battery swapping for electric two- and three-wheelers, providing battery-as-a-service solutions to vehicle manufacturers. This service remained the sole revenue source for Battery Smart in FY24.

    Additionally, the company earned Rs 23 crore from interest on financial assets, bringing its total income to Rs 187 crore in FY24.

    Expenditure Analysis

    On the expenditure side, depreciation charges surged 3.8 times to Rs 85 crore. Finance costs increased nearly 3.75 times to Rs 45 crore, and employee benefit expenses rose by 95.2% to Rs 41 crore. Interestingly, advertising costs decreased by 60% to Rs 8 crore during the fiscal year.

    Overall, Battery Smart’s total expenditures exceeded Rs 327 crore in FY24, more than doubling from Rs 125 crore in FY23. Further breakdowns of the expenses can be found in various other sources.

    Net Loss and Financial Metrics

    Despite robust revenue growth, Battery Smart’s losses widened considerably. The company recorded a net loss of Rs 140 crore in FY24, more than double the Rs 61 crore loss from FY23. The Return on Capital Employed (ROCE) and EBITDA margin were reported at -18.34% and -5.35%, respectively. On a unit basis, Battery Smart spent Rs 1.99 to generate one rupee in operating revenue.

    By March 2024, the Gurugram-based firm had current assets amounting to Rs 328 crore, including Rs 107 crore in cash and bank balances.

    Investment and Market Position

    According to data from startup intelligence platforms, Battery Smart has raised approximately $192 million in funding to date, with Tiger Global and Blume Ventures as its primary investors. The co-founders, Pulkit Khurana and Siddhart Sikka, collectively hold a 28.5% stake in the company.

    Battery Smart is strategically positioned to capitalize on the growing trend of electrification in India’s mobility sector, particularly in the two and three-wheeler segments. The company is incurring substantial costs while establishing optimal Standard Operating Procedures (SOPs) in a complex market. Its near-complete focus on B2B segments could be a significant advantage.

    Nevertheless, the primary risk involves potential resistance from large manufacturers who may prefer proprietary batteries or the development of their own battery-swapping networks, as seen recently with Honda. Regardless, Battery Smart continues to maintain a strong position, especially in the three-wheeler sector, where the swapping model currently outperforms traditional charging options by saving time and facilitating higher vehicle usage.