Battery Smart Raises $65m Series B Round led by LeapFrog Investments

Battery Smart, a network specializing in battery swapping for electric two- and three-wheelers, has disclosed raising $65 million in a Series B funding round led by LeapFrog Investments.

This equity round featured a blend of primary and secondary investments, with participation from both new and existing investors such as MUFG Bank, Panasonic, Ecosystem Integrity Fund (EIF), Blume Ventures, and British International Investment (BII). Elluminate Capital served as the exclusive financial advisor for the funding transaction.

The injected capital will be utilized by Battery Smart to propel its next phase of expansion, aiming to introduce its battery-as-a-service solution to more cities throughout India. Since inaugurating its inaugural swap station in New Delhi in June 2020, the company has swiftly expanded to encompass 1,000 stations across 30 cities, facilitating over 35 million swaps. Extending its reach nationwide, it has established stations in Tier 1, 2, and 3 cities.

Pulkit Khurana, Co-Founder and CEO of Battery Smart, expressed enthusiasm about partnering with LeapFrog Investments, MUFG Bank, and Panasonic, citing their extensive expertise in banking, climate strategy, and environmental sustainability. He also acknowledged the continued support from existing investors Tiger Global, Blume Ventures, EIF, and BII. This collective backing underscores the growing global confidence in battery swapping as an innovative electric mobility solution and Battery Smart’s mission to democratize electric mobility accessibility and affordability. The fresh infusion of capital will accelerate expansion efforts, bolster technology enhancements, and fortify market presence.

The company asserts that its battery-as-a-service solution facilitates two-minute battery swaps, enabling EV drivers to save time, cover longer distances, and reduce upfront costs by up to 40 percent.

Nakul Zaveri, Partner and Co-Head of Climate Investment Strategy at LeapFrog Investments, views Battery Smart’s offering as a significant enabler of India’s net-zero transition, promoting both the rapid adoption and sustained usage of EVs nationwide, along with grid decarbonization. This investment aligns with LeapFrog’s Climate Investment Strategy, which aims to deploy $500 million into pioneering companies capable of rapidly scaling new low-carbon, low-cost technologies across growth markets in Asia and Africa.

One of the primary obstacles to EV adoption in India is the scarcity of charging infrastructure, leading to significant apprehension among potential adopters. Battery swapping presents a solution by offering a straightforward, cost-effective, and efficient approach to EV ownership, obviating the need for expensive battery purchases and extensive charging infrastructure. By establishing a dense network of swap stations, Battery Smart ensures EV users are within a one-kilometer radius of a station, with minimal wait times.

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