Exponent Energy Raises Funds; Eyes Expansion in Vehicle Segments
Bengaluru-based energy firm Exponent Energy has secured Rs.200 crore in a funding round co-directed by 360 ONE Asset and TDK Ventures.
The new funding will be utilized to grow into additional cities and vehicle types, while increasing investments in research and development.
Through this fundraising effort, the six-year-old business has accumulated a total of $65.7 million since its founding.
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The round signifies 360 ONE Asset’s first investment in the electric vehicle (EV) industry. This also marks Hitachi Ventures' inaugural investment in India's energy sector, whereas current investor TDK Ventures has raised its stake through a follow-on investment.
“In the early years, nearly 35 percent of our spending went into R&D. We also focused heavily on supply chain development and manufacturing,” Vinayak says.
The round included contributions from all of Exponent’s current investors, such as Eight Roads Ventures, Lightspeed, 3one4 Capital, and AdvantEdge VC. YourNest, the first institutional supporter of Exponent, contributed $4 million through its Continuum Fund.
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“We have now proven that the technology works. We have three years of field data. We are no longer just a technology company; we are becoming an energy company,” he says.
Arun Vinayak, the founder and CEO of Exponent Energy, informed Businessline that the company plans to use the funds for expansion as well as product development. The firm has since set up an automated production line and effectively tested its technology in the three-wheeled vehicle sector.
Vinayak states that the company's emphasis has shifted from just battery technology to developing a more extensive energy ecosystem, incorporating collaborations with OEMs and energy financing options.
“The focus now is on scale. Expansion will be the core priority for the company over the next couple of years, and a significant portion of this fundraise will be used to support that growth,” he adds.
Atul Auto Limited, along with Exponent Energy, has revealed a strategic partnership aimed at creating and implementing fast-charging electric passenger three-wheelers, representing an important step in boosting the adoption of electric mobility in India. Under the terms of the agreement, the companies have pledged to implement a minimum of 15,000 vehicles utilizing Exponent’s technology within the next three years.
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The collaboration merges Atul Auto’s production expertise with Exponent Energy’s fast charging technologies to create electric vehicles tailored for commercial purposes. The vehicles will incorporate Exponent’s OTO mobility platform, which unifies battery systems, powertrain parts, and vehicle software into a cohesive architecture. Originally validated through retrofit installations, the platform will now be integrated into new vehicles during the manufacturing process.
A significant aspect of the partnership is the implementation of fast charging technology that allows for a complete charge in roughly 15 minutes. This is anticipated to greatly decrease downtime for drivers, enhancing vehicle use and daily earning opportunities. The system is built to provide reliable performance in high-usage scenarios and comes with a warranty that covers up to 2 lakh kilometres, tackling issues regarding battery longevity and life cycle expenses.
Alongside fast charging stations, the vehicles will be compatible with regular public and home charging systems, providing flexibility for operators. This interoperability guarantees that drivers are not restricted to one charging ecosystem and can select charging alternatives based on ease.