Battery tech startup Battery Smart raises $45M led by Acacia Inclusion, others

Battery tech startup Battery Smart has raised $45 million in a new funding round led by a diverse group of investors, including Acacia Inclusion Limited, MUFG Bank, Blume Ventures, The Ecosystem Integrity Fund, and British International Investment. 

According to media reports, Battery Smart is now valued at $341 million, representing a 62.5% jump from its previous valuation of $210 million during the pre-Series B financing round in November last year.

Who invested how much?

The round saw Acacia Inclusion leading with an investment of Rs 125 crore, while MUFG Bank and Blume Ventures contributed Rs 94 crore and Rs 42 crore, respectively.

Ecosystem Integrity Fund and British International Investment each invested Rs 42 crore, and PC-SBI Kurashi Visionary Fund added Rs 25 crore to the total.

What is the purpose of fundraising?

Battery Smart plans to use the new funds to expand its battery-swapping services, which are designed to provide advanced lithium-ion batteries for electric two- and three-wheelers. These batteries can be swapped with fully charged ones in just a few minutes at any of the company's swapping stations.

Founded in 2019 by Pulkit Khurana and Siddharth Sikka, Battery Smart's battery-as-a-service (BaaS) solution is aimed at helping customers save on high upfront costs. 

Notably, The startup has established 1,000 swapping stations across 30 cities and completed over 35 million battery swaps.

With the new funding, It intends to further expand its presence beyond its current strongholds in Haryana, NCR, Karnataka, Rajasthan, Telangana, Uttar Pradesh, and Maharashtra, targeting cities like Mumbai, Bengaluru, Pune, and Kolkata.

Battery Smart competes with several other players in the market, including Sun Mobility, Bounce Infinity, Lithium Power, Lohum, Chargeup, and RACEnergy.