Battery Smart, an Indian electric vehicle battery-swapping network, raised $65 million in Series B funding led by LeapFrog Investments to grow in its native market.
The equity round included primary and secondary investments from new and current investors, including MUFG Bank, Panasonic, Ecosystem Integrity Fund (EIF), Blume Ventures, and British International Investment.
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Battery Smart, co-founded by serial entrepreneurs and IIT-Kanpur alumni Pulkit Khurana and Siddharth Sikka, will use the new funding to expand, improve technology, and expand its market presence.
Battery Smart has quickly expanded to 1,000 stations in 30 cities and completed over 35 million swaps since its June 2020 launch in New Delhi. It carefully opened stations in tier 1, 2, and 3 cities nationally.
Lack of charging infrastructure in India greatly hinders EV adoption, causing worry for potential buyers. The business claims its battery-as-a-service solution, which allows two-minute battery swaps, decreases upfront expenses by 40%, making EV ownership efficient.
Battery Smart’s recent funding follows a $33 million pre-Series B deal from Tiger Global, Blume Ventures, EIF, and BII a year earlier. It closed a $25-million Series A financing headed by Tiger Global in 2022 and a $7-million pre-Series A round from Blume Ventures and Orios Ventures in November 2021.
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The funding is the latest sign of investor interest in India’s EV market. Many Indian firms like Ather Energy, Altigreen, Ola Electric, BOLT, and Baaz Bikes have raised investment from corporate VCs and automakers. Due to rising petrol and diesel prices and environmental awareness, more Indians are taking buses.
BluSmart, an EV ride-hailing service and EV charging infrastructure network, is raising $25 million in its pre-Series B funding round, while GIC-backed Euler Motors closed its Series C funding round last month with $24 million.
“We view Battery Smart’s offering as a major contributor to India’s overall net zero transition enabling not only the rapid adoption and sustained use of EVs across the country but also the decarbonisation of the grid,” said Nakul Zaveri, Partner and Co-Head, Climate Investment Strategy, LeapFrog Investments, said.
Last year, sustainability-focused asset manager LeapFrog Investments announced it will invest $500 million in Asian and African climate change enterprises to reach 50 million low-income individuals. LeapFrog’s climate plan has received funding from Temasek and the EIB.
About Battery Smart
Battery Smart, founded in 2019, makes EV adoption affordable and accessible. They have quickly become India’s largest battery-swapping network for electric two- and three-wheelers after opening their first station in June 2020.
