Exponent Energy Secures USD 26.4 Million Funding, Eyes Expansion To E-Bus Segment

Bengaluru-based energy-tech startup, Exponent Energy, has raised USD 26.4 million in its recent Series B funding round, headed by Eight Roads Ventures. This financing effort also saw a contribution from TDK Ventures, alongside continued support from existing investors such as Lightspeed, YourNest VC, 3one4 Capital, AdvantEdge VC, and the family office of Dr Pawan Munjal, Executive Chairman of Hero MotoCorp. With this latest infusion of capital, Exponent Energy's total funding stands at USD 44.4 million since its establishment three years ago.

Arun Vinayak, CEO of Exponent Energy, spoke about the fundraising, expressing excitement about the support from Eight Roads and TDK. Vinayak highlighted the remarkable journey of the past three years, during which Exponent Energy achieved product-market fit and provided freedom and flexibility for customers in logistics. With the latest funding round, the company aims to scale its operations, covering everything from battery manufacturing to establishing on-ground network presence across various categories and cities.

Exploring New Cities And Segments

The company, co-founded by Arun Vinayak and Sanjay Byalal, plans to utilize the new funds to expand its operations into five additional cities by the fiscal year 2024. Moreover, it envisions entering the intercity e-bus segment in 2024. Exponent Energy's core mission revolves around simplifying energy solutions for electric vehicles (EVs). The firm aims to deploy 1,000 e-pumps (charging stations) and have 25,000 EVs powered by its technology on the road by the year 2025. Notably, the company asserts that it provides a 15-minute rapid charging service and offers a 3,000-cycle life warranty for EVs.

Focus On Deep Tech Expertise

In the electric vehicle sector, many startups face a significant hurdle with a capital-intensive business model, relying heavily on securing new investments. However, Exponent Energy stands out by prioritizing its deep technological expertise, steering away from being heavily reliant on capital expenditures (CAPEX). The company remains committed to maintaining a CAPEX light approach, allowing it to strategically navigate the challenges associated with funding in the industry.

“We are not very CAPEX heavy. Fundamentally if you look at a city where we are going to set up 100 charging stations, we expect an overall capital of INR 5 crore. A single charging station costs around INR 500,000. It is really not a problem of statement around CAPEX, but the speed at which you want to build out R&D, an ecosystem, bring together both vehicles and charging stations at the same time,” Vinayak said.

Aditya Systla, Partner at Eight Roads Ventures, said, “Indian commercial vehicle space constitutes 10 per cent of vehicles but consumes 70 per cent of on-road energy, making Exponent's focus crucial as more vehicles transition to electric power.” Systla stated that this investment marks Eight Roads Ventures' first foray into the electric vehicle sector in India.

Nicolas Sauvage, President of TDK Ventures, provided insights into the investment, commending Exponent Energy for its groundbreaking achievement in creating an economical and scalable 15-minute rapid charging solution. He described the technology as revolutionary, allowing electric vehicles to adopt a more compact battery pack and swiftly charge within a concentrated public charging infrastructure. Sauvage emphasized the shared vision of expanding rapid charging accessibility at a reasonable cost, making electric mobility a viable option for everyone. This collaboration, he stated, represents a significant step toward a more sustainable and electrified future.