Exponent Energy, an Indian startup specializing in rapid charging solutions, is currently in discussions with both new and existing investors to secure funding for the expansion of their energy services business. In a recent interview with Reuters, the company’s Chief Executive, Arun Vinayak, revealed that they are aiming to close this funding round by the end of 2023. While the specific amount of the investment was not disclosed, Vinayak mentioned that it would exceed the $13 million (almost Rs. 107 crore) raised by Exponent last year, which included financing from venture capital firm Lightspeed Venture Partners.
Driving India’s Electrification Efforts
India is actively pursuing the electrification of its road transport sector, targeting buses, commercial vehicles, cars, and scooters, as a means to reduce pollution levels and decrease reliance on fuel imports. This national initiative has created favorable conditions for Indian startups like Exponent, as they contribute to the country’s clean energy transition. Currently, Exponent focuses on manufacturing electric vehicle batteries and providing a network of fast chargers for cargo company Altigreen, whose batteries are now installed in over 200 three-wheeled cargo vehicles. With an order book for an additional 400 cargo vehicles and 30 buses, Exponent is poised for further growth in the market.
Scaling Up and Revenue Projections
By the end of 2025, Exponent anticipates powering a total of 25,000 vehicles and achieving profitability with revenues amounting to approximately Rs. 6 billion. One of the key factors contributing to the company’s success is their 15-minute rapid charging technology, which enables EV batteries to reach full capacity quickly. As a result, vehicles can be equipped with smaller, more affordable batteries, making electric vehicles more accessible to a wider customer base. Additionally, the fast charging capability facilitates efficient operations, allowing for quicker turnaround times. Altigreen’s three-wheelers, for example, have a range of 70 to 95km on a single battery charge, thanks to Exponent’s innovative technology.
Exponent’s utilization of water-based cooling technology during the charging process has proven to be highly effective in preventing battery overheating. Furthermore, the reduced battery size made possible by the rapid charging system plays a major role in cost reduction for EV manufacturers. Vinayak emphasized that due to the smaller battery size, vehicle prices are significantly lowered, providing a distinctive advantage in the market. This cost advantage positions Exponent as a key player within the electric vehicle ecosystem, contributing to the wider adoption of clean mobility solutions.
Exponent Energy is well-positioned to capitalize on India’s push towards electric vehicles and sustainable transportation. By expanding their energy services business to three-wheeled vehicles and buses, the company aims to support the country’s ambitious electrification goals. With its innovative rapid charging technology and cost advantages, Exponent is set to drive the transition to electric mobility in India, thereby contributing to the reduction of pollution and the promotion of sustainable growth.