Battery Smart, India’s largest and fastest-growing battery swapping network for electric two- and three-wheelers, has successfully raised $65 million in a Series B funding round. The round was led by LeapFrog Investments, a firm renowned for its profit-with-purpose investments. The equity round, comprising both primary and secondary investments, saw participation from new and existing investors, including MUFG Bank, Panasonic, Ecosystem Integrity Fund (EIF), Blume Ventures, and British International Investment (BII). Elluminate Capital served as the exclusive financial advisor for the transaction.
Battery Smart plans to utilize the new capital infusion to fuel its next phase of expansion, aiming to bring its battery-as-a-service solution to more cities across India. Since launching its first swap station in New Delhi in June 2020, the company has rapidly scaled to 1,000 stations across 30 cities, completing over 35 million swaps. The network’s strategic setup spans Tier 1, 2, and 3 cities, significantly enhancing the convenience and feasibility of electric mobility for over 45,000 active customers.
Pulkit Khurana, Co-Founder and CEO of Battery Smart, expressed enthusiasm about the new partnerships, stating, “We are thrilled to partner with LeapFrog Investments, MUFG Bank, and Panasonic, who bring extensive expertise across banking, climate strategy, and environmental sustainability. We are also profoundly grateful for the continued support from our existing investors – Tiger Global, Blume Ventures, EIF, and BII. Their combined support showcases the growing global confidence in battery swapping as an innovative electric mobility solution and the mission of Battery Smart to make electric mobility accessible and affordable for all.”
Battery Smart’s asset-light approach enables it to collaborate with Indian Small and Medium-sized businesses (SMBs), leveraging their existing infrastructure to rapidly set up swap stations. This strategy not only facilitates swift network expansion but also boosts the livelihoods of local business owners. The company’s two-minute battery swaps allow EV drivers to save time, cover greater distances, and reduce their upfront costs by up to 40%.
LeapFrog Investments’ Partner and Co-Head of Climate Investment Strategy, Nakul Zaveri, highlighted the significance of Battery Smart’s contribution to India’s net zero transition. “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 decarbonization of the grid. This investment aligns perfectly with LeapFrog’s Climate Investment Strategy, which aims to invest $500 million into innovative companies that can rapidly scale new low-carbon, low-cost technologies across growth markets in Asia and Africa.”
MUFG India’s Deputy CEO, Shashank Joshi, remarked, “This investment in Battery Smart aligns with our commitment to a zero-carbon future and our support to uplift innovative solutions that drive sustainable growth. Battery Smart’s technology-driven approach aligns with our vision of empowering businesses and communities and enhancing India’s EV infrastructure.”
As India’s vehicle count is projected to grow to 200 million two-wheelers and 12 million three-wheelers by 2030, Battery Smart positions itself as a key player in this burgeoning market. By offering a dense network of swap stations ensuring EV users are within a 1 km radius of a station, Battery Smart is effectively addressing one of the biggest hurdles to EV adoption in India – the lack of charging infrastructure.
Battery swapping offers a straightforward, cost-effective, and efficient solution for EV ownership, eliminating the need for expensive battery purchases and extensive charging setups. Battery Smart’s expansion is set to significantly bolster the country’s EV infrastructure, making electric mobility more accessible and practical for the masses.
