Gurugram-based electric mobility solutions startup Battery Smart, which offers a battery swapping network platform for electric two and three-wheelers, has raised $65 million in a Series B funding round, led by LeapFrog Investments, it said on Tuesday.
MUFG Bank and Panasonic came in as new investors, while existing backers Ecosystem Integrity Fund (EIF), Blume Ventures and British International Investment (BII) also participated in the round.
“This investment is a natural fit for LeapFrog’s Climate Investment Strategy, which aims to invest $500 million into innovative companies that can rapidly scale new low-carbon, low-cost technologies across growth markets in Asia and Africa,” said Nakul Zaveri, partner and co-head, climate investment strategy, LeapFrog Investments.
The equity round involves a primary component of $45 million, while remaining is secondary. VCCircle reported earlier on Tuesday that venture capital firm Orios Venture Partners struck a partial exit as a part of the deal, clocking a multibagger return in the process.
The Tiger Global-backed startup plans to use the capital to fuel its expansion plans across more cities in the country, it said in a statement.
“(Investors’) combined support showcases the growing global confidence in battery swapping as an innovative electric mobility solution and the mission of Battery Smart to make electric mobility accessible and affordable for all,” said Pulkit Khurana, co-founder and chief executive of Battery Smart.
Elluminate Capital acted as the exclusive financial adviser for the transaction.
“The fresh capital will enable us to accelerate our expansion, enhance our technology, and strengthen our market presence,” he added.
Founded in 2019 by IIT-Kanpur alumni, Khurana and Siddharth Sikka, Battery Smart offers battery-as-a-service, which enables interoperable battery swapping for two and three-wheeler EVs in under two minutes and reduces the up-front investment borne by a consumer.
It currently operates a battery-swapping network of more than 1,000 swap stations across 30 cities. It claims to have completed more than 35 million battery swaps to date.
The deal comes less than a year after the startup said it raised $33 million in pre-Series B round from a host of existing and new investors including Tiger Global, Blume Ventures, EIF and BII. Prior to this, Battery Smart raised $25 million in Series A funding led by Tiger Global, along with participation from Blume Ventures and Orios Ventures in June 2022.