Exponent Energy, a dynamic EV charging infrastructure startup, has successfully raised $26.4 million in its Series B funding round. The investment drive was spearheaded by Eight Roads Ventures and TDK Ventures, highlighting the growing confidence and interest among investors in the rapidly evolving EV sector.
Joining the funding fray were prominent contributors, including Lightspeed, YourNest VC, 3one4 Capital, AdvantEdge VC, and the family office of Pawan Munjal, Executive Chairman of Hero MotoCorp. According to sources close to the matter, the deal values Exponent Energy in the range of $120 million to $150 million, further solidifying the startup’s position in the competitive landscape.
This recent injection of capital brings Exponent Energy’s total funding to an impressive $44.4 million. The Bengaluru-based startup has ambitious plans for the utilization of these fresh funds, primarily focused on expanding its presence to five new cities—Delhi, Hyderabad, Chennai, Mumbai, and Ahmedabad—by the fiscal year 2024.
A key component of Exponent Energy’s expansion strategy involves diversifying its offerings within the electric vehicle space. The startup is set to enter the electric three-wheeler (e3W) sector and make a strategic foray into the intercity electric bus (e-bus) segment by 2024. Arun Vinayak, Co-founder and CEO of Exponent, envisions deploying 1,000 e^pumps (charging stations) and powering 25,000 EVs under the Exponent banner by 2025.
“In FY24, in just one city, we are averaging a run rate upwards of Rs 2 crore a month in revenue. We will be looking to scale up to more cities, and this will obviously be expanding revenues,” Vinayak said, emphasizing the impressive financial performance that underpins the startup’s growth trajectory.
Looking towards the future, Exponent Energy sets an ambitious revenue target of Rs 600 crore by 2025, driven by expansion into the three-wheeler cargo, three-wheeler passenger, and e-bus segments. The startup’s confidence in achieving these milestones is grounded in its innovative technology, which claims to charge any electric vehicle from 0 to 100 percent within a remarkable 15 minutes.
Founded in late 2020 by Vinayak and Sanjay Byalal, both former executives at Ather Energy, Exponent Energy boasts a proprietary energy stack comprising the e^pack (battery pack), e^pump (charging station), and e^plug (charging connector). The company asserts that this technology unlocks a rapid 0 to 100 percent charge in 15 minutes for EVs while offering a 3000-cycle life warranty using regular Li-ion cells.
Currently, Exponent Energy operates around 30 charging stations in Bengaluru, with plans to double this number in the city and extend its footprint to other urban centers. The startup collaborates with original equipment manufacturers (OEMs) and fleet partners, integrating its e^pack into a rapid charging variant. It establishes a network of e^pumps, allowing end users in logistics to conveniently charge their Exponent-powered EVs. Partnerships with industry players such as the Murugappa Group and AltiGreen underscore the growing network of Exponent Energy in the EV charging space.
This latest funding triumph follows Exponent’s earlier financial achievements. In December 2021, the startup secured $5 million in funding from existing investors YourNest VC, 3one4 Capital, and AdvantEdge VC, along with the participation of the Motherson Group. Subsequently, in August 2022, Exponent secured an additional $13 million in funding from Lightspeed Venture Partners, with continued support from existing institutional investors such as YourNest VC, 3one4 Capital, and AdvantEdge VC. Notably, TDK Ventures’ participation in the current funding round marks its inaugural investment in India’s EV sector.
Nicolas Sauvage, President of TDK Ventures, praised Exponent for its groundbreaking achievement, stating, “Exponent’s groundbreaking achievement in crafting an economical and scalable 15-minute rapid charging solution utilizing standard LFP cells is revolutionary, allowing electric vehicles to adopt a more compact battery pack that can swiftly charge within a concentrated public charging infrastructure, effectively removing range anxiety.”
As Exponent Energy charts an ambitious course for expansion, fueled by substantial investment and innovative technology, the startup stands poised to play a pivotal role in shaping the future of electric mobility in India and beyond. Investors, industry observers, and EV enthusiasts alike are keenly watching as Exponent Energy prepares to reshape the landscape of electric vehicle charging infrastructure.
