Battery Smart Raises $65 Million to Accelerate EV Infrastructure in India

Battery-swapping services provider Battery Smart has secured $65 million (Rs 543 crore) in a funding round led by South African private equity firm LeapFrog Investments, achieving a valuation of $340 million (Rs 2,842 crore). The funding includes $45 million (Rs 376 crore) in primary funding, with the remainder raised through secondary funding. Early angel investors and Orios Venture Partners participated in the secondary share sale, according to cofounder Pulkit Khurana.

New investors in Battery Smart include LeapFrog Investments, through its special purpose vehicle Acacia Inclusion, MUFG Bank, and PC-SBI Kurashi Fund. Existing investors Blume Ventures, British International Investment, and Ecosystem Integrity Fund also increased their stakes. In the primary funding round, LeapFrog invested Rs 125 crore, MUFG Bank contributed Rs 94 crore, and PC-SBI Kurashi Fund invested Rs 25 crore. Additionally, British International Investment put in Rs 49 crore, while Blume Ventures and Ecosystem Integrity Fund each invested Rs 42 crore.

Nakul Zaveri, partner and co-head of LeapFrog's climate investment strategy, emphasized the strategic importance of this investment. "Battery Smart's offering is a major contributor to India’s net zero transition, enabling the rapid adoption and sustained use of EVs across the country, and decarbonising the grid. We are excited to partner with Pulkit and Siddharth to accelerate India’s transition toward electric mobility," Zaveri stated.

This latest funding follows Battery Smart's $33 million raise in July last year from investors including Tiger Global, Blume Ventures, Ecosystem Integrity Fund, and British International Investment. The fresh capital will strengthen Battery Smart's balance sheet and support its expansion into 10 new locations, targeting towns in eastern UP, Bihar, Punjab, and the northeastern states. Currently operational in 30 cities, the Delhi-based company has recently expanded into Mumbai, Bengaluru, Pune, and Kolkata. The firm plans to increase its team size from the current 350 employees and enhance its technological capabilities.

Battery Smart reported Rs 63 crore in revenue and a Rs 64 crore loss for FY23. However, it achieved a 200% revenue growth in FY24 and was EBITDA profitable for nine months of FY24. Khurana expects the firm to remain EBITDA profitable for FY25 while doubling its revenue.

India’s EV market, projected to be a $266 billion opportunity by 2030, continues to attract significant investments as the country pushes towards a greener future. Battery Smart’s strategic moves and robust financial backing position it as a key player in this rapidly growing sector.