Bengaluru-based Exponent Energy, an energy tech startup which provides rapid 15-minute charging for EVs, has secured INR 220 Cr ($26.4 Mn) in its Series B funding round led by Fidelity-backed Eight Roads Ventures.

The funding round also saw participation from TDK Ventures and Exponent Energy’s existing investors including Lightspeed, YourNest VC, 3one4 Capital, AdvantEdge VC, and the family office of Dr. Pawan Munjal, executive chairman at Hero MotoCorp.

Speaking to Inc42 about the fresh fundraise, Arun Vinayak, cofounder and CEO of Exponent Energy, said that after finding its product-market fit, the startup is now looking to strengthen its manufacturing and business operations.

“Until now we did only three-wheeler cargo. In the coming year, we are going to use the same fundamental battery tech, leverage the same network and enter the three-wheeler passenger category. And we also have an intercity bus market that we are now going to tap in 2024,” said Vinayak.

He said that Exponent Energy’s battery tech for three-wheelers has reached past the product development stage and it now aims to scale the operations on both the business and manufacturing fronts. Meanwhile, its battery tech for ebus is still in the R&D phase, but the startup aims to use the fresh fund infusion to accelerate the R&D and bring the product to the market.

Founded in 2020 by former Ather Energy executives Arun Vinayak and Sanjay Byalal, Exponent Energy aimed to build a tech enablement platform that can help original equipment manufacturers (OEMs) across segments make EVs by solving the problem associated with long charging hours.

Its charging station is called ‘e^pump’, which transfers refrigerated water through its charging connector called ‘e^plug’ to prevent overheating during the rapid charging of its battery packs, ‘e^packs’. The startup currently has 30 charging stations spread across Bengaluru.

Besides increasing its ‘e^pump’ installations in Bengaluru, Exponent Energy is also looking at entering five other cities – Delhi, Chennai, Hyderabad, Mumbai, and Ahmedabad – in 2024.

Including the fresh infusion, Exponent Energy has so far raised $44.4 Mn.

What Makes Investors Take A Bet On Exponent Energy?

The investment in Exponent Energy marks the first investment by TDK Ventures and Eight Roads Ventures in India’s EV sector.

Exponent Energy will also collaborate with TDK Ventures to further reduce the cost structure of rapid charging tech. 

“We share the vision of expanding rapid charging accessibility at a reasonable cost, making electric mobility an option for everyone. This collaboration represents an exciting stride toward a more sustainable and electrified future,” said Nicolas Sauvage, president at TDK Ventures, in a media statement.

Speaking to Inc42 about investing in Exponent Energy, Aditya Systla, partner at Eight Roads Ventures, said the fund infusion comes in the backdrop of booming EV adoption in India and new developments in the three-wheeler cargo space. 

“Our belief is that the entire commercial vehicle segment… we are going to see a lot of them go electric. Adoption is fundamentally growing because of reasons including improved product quality, lower total cost of ownerships, and a bunch of government’s push in the form of subsidies,” said Systla, adding that these macro reasons drove Eight Roads Ventures to invest in the player catering to the broader EV space.

“Also, we wanted to play this horizontally, so we chose a battery play rather than a specific OEM. And within battery and charging, our belief is that rapid charging is the key unlock which is going to drive large-scale EV penetration of commercial vehicles,” he said.

Besides, Exponent Energy has built a very strong differentiated two-sided solution that offers rapid charging in 15 minutes as well as a high battery life warranty of 3,000 cycles for its EV batteries, added Systla.

The VC firm invested $10.5 Mn in this funding round.

In the coming months, Exponent Energy also aims to expand its existing manufacturing facility in Bengaluru and increase its total number of charging stations in the city to 100 by March next year.

In August last year, the startup raised $13 Mn in its Series A funding round led by Lightspeed after partnering with three-wheeler EV OEM Altigreen Propulsion Labs. Recently, the startup also announced a partnership with Chennai-based Murugappa Group, while more such announcements are upcoming.

Exponent Energy continues to work towards its target of catering to 25,000 EVs and a revenue of around INR 600 Cr by 2025.