Battery Smart, a battery swapping network for electric two- and three-wheelers, has secured $65 million in a Series B funding round led by LeapFrog Investments.

This equity round included both primary and secondary investments and saw participation from new and existing investors, such as MUFG Bank, Panasonic, Ecosystem Integrity Fund (EIF), Blume Ventures, and British International Investment (BII).

Battery Smart allows for two-minute battery swaps, enabling EV drivers to save time, travel longer distances, and lower their upfront costs by up to 40%.

Elluminate Capital served as the exclusive financial advisor for the transaction.

The funds will support Battery Smart’s next phase of expansion, which involves bringing its battery-as-a-service solution to more cities across India.

Since opening its first swap station in New Delhi in June 2020, Battery Smart has grown to 1,000 stations across 30 cities, completing over 35 million swaps. The company has established a presence in Tier 1, 2, and 3 cities nationwide.

Battery Smart provides over 45,000 active customers with a convenient, low-carbon driving range. Its asset-light model allows it to collaborate with Indian small and medium-sized businesses and utilize their existing infrastructure to rapidly set up swap stations, thereby enhancing the livelihoods of local business owners.

Pulkit Khurana, Co-Founder and CEO of Battery Smart, said, “We are thrilled to partner with LeapFrog Investments, MUFG Bank, and Panasonic, who bring extensive expertise across banking, climate strategy, and environmental sustainability. We are also profoundly grateful for the continued support from our existing investors-Tiger Global, Blume Ventures, EIF, and BII. Their combined support showcases the growing global confidence in battery swapping as an innovative electric mobility solution and the mission of Battery Smart to make electric mobility accessible and affordable for all. The fresh capital will enable us to accelerate our expansion, enhance our technology, and strengthen our market presence.”

By 2030, India’s vehicle count is expected to reach 200 million two-wheelers and 12 million three-wheelers.

Shashank Joshi, Deputy CEO of MUFG India, said, “Our investment in Battery Smart aligns with our commitment to a zero-carbon future and our dedication to supporting innovative solutions that drive sustainable growth. Battery Smart’s technology-driven approach resonates with our vision of empowering businesses and communities while enhancing India’s EV infrastructure.”

One of the major obstacles to EV adoption in India is the insufficient charging infrastructure, leading to considerable anxiety for potential EV buyers. Battery swapping addresses this issue by offering a simple, cost-effective, and efficient alternative, eliminating the need for costly battery purchases and extensive charging infrastructure.

Battery Smart aims to ensure that EV users are always within a 1 km radius of a station, with no waiting time.

Last July, the company had raised $33 million by closing a pre-series B funding round.

EV sales in India reached a record 486,669 units in the first quarter of 2024, a jump of over 40% year-over-year against the 347,676 units sold in the same period of 2023.