Electric vehicle startup RACEnergy gets funding from GrowX Ventures

By Narinder Kapur

  • 03 Feb 2020
Credit: VCCircle

Racenergy Pvt. Ltd, which is developing electric vehicle powertrains and recharging infrastructure, has raised funding from growX Ventures and early-stage investor Prophetic Ventures.

The company, founded in 2018 by Arun Sreyas and Gautham Maheswaran, also raised capital from angel investors Ananth Nakirikanti and Sidhartha Namburi. The startup didn’t disclose the amount it mopped up.

RACEnergy is part of Huddle’s EV Accelerator Program, which was setup along with growX Ventures. It will use the capital for product development and conducting pilot projects, Sreyas told VCCircle.

The EV solutions provider is also aiming to expand its swapping infrastructure for three-wheeler vehicles across a metro city and launch more variants of its products in the medium term, Sreyas added.

According to its website, RACEnergy says it will concentrate on building electric vehicles and the supporting infrastructure, with a particular focus on affordability, convenience and safety. Currently, it is operating in the electric powertrain and battery-swapping segments.

Sreyas is an alumnus of the Birla Institute of Technology and Science-Pilani and has worked with entities such as ID Energy and Johnson Controls, his LinkedIn profile shows. Maheswaran is also a BITS-Pilani graduate and has worked with firms such as Dr. Reddy’s Laboratories.

Continued interest in the EV segment

The investment in RACEnergy represents yet another bet on a company in the electric mobility and related segments. The segment has received a policy push, too, with the central government having taken steps to attract both companies and end-consumers.

In July last year, finance minister Nirmala Sitharaman said the government would provide an income-tax deduction of Rs 1.5 lakh on the interest paid on loans taken to buy electric vehicles and reduce customs duty on certain parts.

Last month, electric mobility infrastructure digital solutions provider Numocity Technologies Pvt. Ltd raised funding from investors including early-stage VC firm Ideaspring Capital, Singapore- and Japan-based Rebright Partners and ABB Technology Ventures.

In December, affordable electric utility vehicles maker Pi Beam Labs Pvt. Ltd raised around $705,000 in a bridge funding round from state-owned natural gas distribution company GAIL (India) Ltd.