Electrical car (EV) quick charging startup Exponent Vitality is ready to shortly shut its first funding spherical in additional than a yr by elevating USD 25 million at a valuation of USD 100-120 million, a number of individuals briefed on the event stated.
The spherical shall be led by Constancy-backed world investor Eight Roads, which has invested in Indian startups equivalent to Pharmeasy, Whatfix, Shadowfax and Icertis. Exponent Vitality’s current buyers together with Lightspeed India and AdvantEdge VC will even participate within the spherical, the individuals cited above stated.
Exponent Vitality had final raised USD 13 million in August 2022 in a Collection A led by Lightspeed that valued the Bengaluru-based startup at round USD 45 million.
“Initially, the corporate was looking for to boost near USD 40 million however the spherical is getting finalised at USD 25 million,” one of many individuals cited above stated. “Exponent has been available in the market to boost funds for the final three to 4 months,” the individual added.
One other individual stated the corporate is seeking to deploy the recent capital to increase its charging infrastructure into extra cities whereas additionally enhancing its battery portfolio for extra use circumstances.
“Presently, the corporate is current solely in Bengaluru, and is finalising plans to increase into Delhi, Mumbai, Chennai, Hyderabad and Ahmedabad,” the individual stated. “Additional, Exponent develops batteries proper now for three-wheeler cargo EVs…it’s near creating batteries for three-wheeler passenger automobiles and buses,” the individual added.
The corporate began promoting its merchandise in February this yr and is taking a look at Rs 600 crore in income for calendar yr 2025.
Exponent Vitality declined a request for remark.
Based by former Ather Vitality executives Arun Vinayak & Sanjay Byalal Jagannath in 2020, the corporate has developed a know-how that claims to totally cost a car in quarter-hour, a lot lower than the common time of no less than three hours.
To make sure fast charging, EV makers have to put in Exponent’s battery pack of their automobiles, and the top person can cost the car utilizing Exponent’s personal charging stations. The corporate at the moment has 30 such charging stations.
In line with information sourced from Tracxn, following the earlier funding spherical, Vinayak was the biggest shareholder in Exponent Vitality with a 19.8% stake, adopted by YourNest VC and Lightspeed with 14.9% and 14.7%, respectively.
Eight Roads, Lightspeed and AdvantEdge VC didn’t reply to queries looking for remark.
EV funding drag
Exponent Vitality’s potential fundraise reveals buyers are hopeful on the corporate’s long-term prospects. It comes at a time when the startup ecosystem is battling a protracted liquidity crunch impacting companies’ skill to boost capital or accomplish that at decrease valuations.
“The understanding is that whereas there may be room for progress within the EV and mobility house, the sector remains to be in an funding section. However buyers are choosing and selecting,” an investor centered on the mobility sector stated.
“Even within the case of Exponent, the preliminary quantity that the corporate got down to increase was larger than what has been closed,” he added.
In September, two-wheeler maker Ather Vitality closed a Rs 900 crore fundraise (round USD 110 million) from current backer Hero MotoCorp and Singapore’s sovereign wealth fund GIC. Initially, nevertheless, the corporate was seeking to increase round USD 250 million. Equally, three-wheeled EV maker Euler Motors is near finalising a USD 25 million spherical, which is lower than the USD 60 million it raised final yr.
In Could this yr, electrical mobility startup BluSmart raised USD 42 million in a mixture of debt and fairness from current buyers with virtually half of the spherical subscribed by its founders – Anmol Jaggi, Punit Goyal, Anirudh Arun, Tushar Garg, Rishab Sood, and Rahul Jain – and the management workforce.
The inner fundraise spherical got here within the backdrop of the BP Ventures-backed BluSmart’s USD 250 million spherical failing to materialise.
