While making money out of an EV charging station is still a ‘How-to’, Kerala based ChargeMOD aims to make EV charging a viable business.
The bootstrapped start-up has been working in the field of EV charging since Oct 2018 and has since commissioned 7 EV charging stations in Calicut. The company relies on monthly recurring revenue through a subscription-based model for its customers.
Speaking to EVreporter, Ramanunni M – Founder of ChargeMOD shared that they have 60 subscribed customers at the moment, comprising of three-wheeler and two-wheeler drivers.
How does it work?
The 28-day subscription pricing for 2W is INR 351 for 37 units (kWh) and INR 855 for 91 kWh. This amount of energy provides sufficient charging for the subscription period as most of the drivers also use home charging at night; while charging required during the workday is done at the charging station. The customers can discover the ChargeMOD stations through the mobile app and use the nearest station on the network for charging their vehicle.
Unit Economics of the model
Explaining the unit economics of their business model, Ramanunni M says “We get electricity from the state government at Rs. 5.5 per unit and we are effectively charging the customer around Rs. 9 per unit, that gives us an operating margin of around 40%. Our solutions are economical for end customers when compared to other Charging Solutions – BPCL stations in Kerala charge more than Rs. 300 for a full charge (i.e. 50 Rs./unit) and swapping stations charge Rs. 150 per swap i.e. effectively Rs. 25 per unit.”
The start-up has managed to keep the Capital Expenses in check by manufacturing and installing their own Charging equipment – called BlackBox i.e. a single gun AC charger with a 3-pin arrangement.
The company claims the Blackbox to be 10-15% faster than home charging.
Creating a Charging Ecosystem
The start-up is working to create a complete charging ecosystem that also empowers individuals to set up charging stations and earn revenue through this business.
ChargeMOD has installed EV Charging Infrastructure in Central Kozhikode in partnership with the dealer of Hero Electric and is coming up with more charging stations in different parts of Kerala in conjunction with official dealers of Okinawa and Greaves Ampere.
The company offers its Blackbox charger at Rs. 7,999 and a complete charging station management software module to its partner businesses. They aspire to enable entrepreneurs and existing businesses to generate additional income by installing the Blackbox chargers at their premises.
“BlackBox can be considered a plug and play device with an installation cost up to a maximum of Rs. 5,000 for extra cabling (if required based on the distance from electrical connection hotspot), MCB and ELCB to be added for protection if absent earlier”, informs Ramanunni.