Battery swapping company Chargeup raises USD 2.5 million in Pre-Series A

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Chargeup, the Delhi based battery-swapping company for electric two and three-wheelers, has announced that it has raised USD 2.5 million in pre-Series A round led by Capital-A and Anicut Capital. 

Actors Tiger Shroff, Shraddha Kapoor, Aman Gupta and Sameer Mehta (founders of Boat), and Grip (the leasing partner) were among the other notable investors in the round. The investment will be utilised to expand Chargeup’s network to other cities and building larger capacities to meet the growing demand.

Chargeup is offering Battery as a Service (BaaS) with Lithium-ion batteries that can be swapped at multiple swap points. They are currently operating 100 Battery swap stations in Delhi. The BaaS model helps the end-user to convert a large fraction of the vehicle cost (50% says a company statement) from CapEx to OpEx. Battery swapping also eliminates range anxiety and the need for buying or managing batteries as the service provider takes care of these needs.

According to a company statement, Chargeup’s standardized battery technology and execution capabilities are focused on delivering on its brand promise of a 2-minute battery swap within a 2 km radius, resulting in double the revenue for drivers and dealer partners. The company has grown from two stations to 100 stations with 800 drivers on its platform, covering 2 million zero-emission kilometres each month.

Varun Goenka, CEO, and Co-founder, Chargeup said, “With this funding support, we aim to expand our network coverage and further enhance the capacities of our battery swapping stations to meet the growing demand. With a strong grip on the execution of this business, Chargeup has built a CapEx and OpEx light model thus making it fast and scalable. We are rapidly expanding our network and aiming to benefit the lives of millions of e-rickshaw drivers in India, while also extending our solutions to growing delivery network of EV 2 & 3 wheelers”.

Ankit Kedia, Founder, Capital-A said, “As a venture fund committed to backing sustainable and cleantech companies, we are happy to be a part of Chargeup’s journey towards building an EV-centric future and support them in every way possible. This is our first investment as a part of our recently launched exclusive $10 million (INR 75 crore) cleantech fund ‘Evolve’.”

Ashvin Chadha, Co-founder and Managing Partner, Anicut Angel Fund said, “Mass adoption of EVs will gain momentum only when the charging concerns are eliminated through solutions such as battery swapping. This is where Chargeup is going to be a key enabler, and we are looking forward to the brand’s journey in the Indian EV battery swapping/charging arena.”

The Indian government is expected to come up with a battery swapping policy this year to establish industry wide standards. Removing battery cost from the equation can make EVs cheaper by up to 40% and make them more affordable for fleet owners.

Also Read: Leading battery swapping solutions providers in India