In a significant move for the electric vehicle (EV) industry, fast-charging startup Exponent Energy is nearing the completion of its funding round, with hopes to raise a robust $25 million. Sources suggest that this move may place the company’s valuation in the range of $100-120 million.
Eight Roads, a global investor supported by Fidelity, is anticipated to lead the funding initiative. The company, known for its investments in renowned Indian startups such as Pharmeasy and Shadowfax, will be joined by Exponent Energy’s existing backers, Lightspeed India and AdvantEdge VC.
Rewinding to the previous year, Exponent Energy attracted an impressive $13 million during its Series A funding, with Lightspeed at the helm. This round pegged the Bengaluru-based startup’s valuation at an estimated $45 million.
However, the financial landscape saw a shift in this round. Initially, Exponent aimed to gather nearly $40 million, but insiders report a revised figure closer to $25 million. “The firm has been actively seeking funds for the past few months,” shared an anonymous source.
Launching its product lineup in February of the current year, Exponent Energy has set an ambitious revenue target of Rs 600 crore by 2025.
The company, a brainchild of former Ather Energy executives, Arun Vinayak and Sanjay Byalal Jagannath, is revolutionizing the EV charging space. Their innovative technology promises a full vehicle charge in just 15 minutes, dwarfing the conventional three-hour charge time. For accessing this rapid charge feature, EV manufacturers must incorporate Exponent’s unique battery pack, with users charging at one of the company’s 30 dedicated stations.
Post their earlier fundraising, data from analytics firm Tracxn positioned Vinayak as the primary shareholder of Exponent Energy, boasting a 19.8% stake. Following closely were YourNest VC and Lightspeed, with 14.9% and 14.7% stakes respectively.
Amid these developments, while Eight Roads, Lightspeed, and AdvantEdge VC refrained from commenting, Exponent Energy also opted for discretion.
In the larger context, this funding endeavor for Exponent Energy signifies the sustained investor confidence in the EV sector, even as many startups face liquidity challenges and valuation pressures. As one mobility sector analyst noted, “The EV sector continues to hold promise, but the game is now about strategic investment decisions.”
