Relux Electric raises Rs 250Cr to expand charging network in South India

Relux Electric, a key player in the electric vehicle (EV) charging infrastructure market, has raised Rs 250 crore from private real estate and infrastructure investors to expand its network in South India.

The funding is aimed at facilitating the development of hypercharging stations along major highways, enhancing the region's EV support infrastructure.

Who are the investors?

The funding was led by a consortium of private investors specializing in real estate and infrastructure, committed on a revenue-sharing basis. The deal was structured without any equity dilution, allowing Relux to retain full ownership and control of its assets. 

What is the purpose of fundraising?

The fresh capital injection of Rs 250 crore will be used over the next eight months to establish 20 new hypercharging stations across key highways in South India. 

These stations will be strategically located along busy routes such as NH 44, NH 45, and NH 556, covering areas from 1 to 1.5 acres each.

Karthikeyan Santharam, Managing Director and CEO of Relux Electric emphasized the importance of these expansions in facilitating more efficient and rapid charging options for various vehicles, including small—to medium-sized cars, high-end cars, buses, and trucks.

What additional features will these charging stations include?

Beyond just charging facilities, Relux's new stations will offer comprehensive amenities to enhance the user experience.

Each station will be equipped with eateries and shopping centres, catering to travellers' needs while their vehicles charge.

The stations are designed to support rapid charging, with three-wheelers taking as little as 10 minutes and four-wheelers 18 minutes to charge fully, showcasing Relux’s commitment to convenience and efficiency.

Aligns with expansion plans

The expansion aligns with Relux Electric's broader strategy to not only increase the number of charging stations but also maximize their utilization.

Santharam highlighted that from its inception, Relux has focused on achieving operational profitability by enhancing asset utilization, which currently stands at double the industry average. The company’s in-house R&D and original design equipment for charging stations contribute to minimal downtime and efficient operations. 

Planning to launch a new business vertical

Looking ahead, Relux Electric plans to launch a new business vertical aimed specifically at fleet operators and commercial EV owners. This move will involve setting up dedicated AC charging stations in collaboration with residential and commercial complexes, fleet operators, and travel agencies.

The initiative is intended to segregate commercial and private vehicle charging, thereby optimizing space utilization and maintaining the service quality for different user groups.

Relux is also exploring additional funding options to support its aggressive expansion plans across India, with a focus on maintaining its market leadership in the southern states while extending its footprint to the eastern and western regions.