Exponent Energy, a startup developing fast-charging batteries for electric vehicles, has raised $13 million in a Series A funding round led by Lightspeed India.
The deal marks Lightspeed’s first investment in the EV space in India.
Other existing investors such as YourNest VC, 3one4 Capital & AdvantEdge VC also participated in the funding round, which is expected to allow Exponent to scale up its rapid charging stations to 100 location points per city, and streamline the production of its battery pack.
“While our immediate focus is to set up 100 e^pumps (charging stations) in Bengaluru by March 2023, we will set up 100 e^pumps in every city we launch, starting with Delhi early next year,” Exponent co-founder Arun Vinayak told DealStreetAsia in an emailed response.
Vinayak, a former Ather Energy executive, founded Exponent with his colleague Sanjay Byalal Jagannath in 2020. The company now claims to have manufactured a battery pack & charging station that together unlock a 0 to 100% rapid charge within 15 minutes for EVs with any number of wheels & provide a 3000 cycle life warranty – while using regular Li-ion cells.
So far, Exponent has raised $6 million from auto parts supplier Motherson Group, YourNest VC, 3one4 Capital and AdvantEdge VC. Less than a month ago, the company also raised an undisclosed sum from the family office of Hero MotoCorp chairman and CEO Pawan Munjal.
The company declined to disclose its valuation.
India is one of the largest markets for EVs in Asia only behind China. According to the Federation of Automobile Dealer Association, Indian EV sales increased three-fold to 4,29,217 units in FY22, compared to 1,34,821 units from the year-ago period.
Mass EV adoption, however, faces a huge challenge in the area of battery charging technology and infrastructure. While automakers and auto part makers have tried to address this concern by making swapping batteries, and building charging stations, it still takes hours to charge an EV.
Harsha Kumar, partner, Lightspeed said, “The need for enhancing EV battery performance, sustainability and most of all access and affordability has never been more pressing. This team, with their drive and innovation, has made rapid EV battery charging possible in just 15 minutes. We are confident that the technology is a real breakthrough, allowing EVs to become ubiquitous.”
Globally, this is Lightspeed’s second investment in the EV space. It also has a stake in QuantumScape, a manufacturer of lithium-metal batteries for use in electric vehicles.