Bengaluru-based electric vehicle (EV) battery solutions provider, The Energy Company has secured $2 million (~₹173.8 million) in a pre-Series A funding round.

Siana Capital, Callapina Capital, Z21 Ventures, 1Crowd, Lets Venture, and other top-tier investors led the funding round.

The company had earlier completed a pre-seed round for $600,000 (~₹52.14 million).

The funds will be used to grow the company’s full-stack battery intelligence platform, Flexi, which helps commercial electric vehicle fleets address key challenges such as battery lifespan and financing.

The company plans to scale up FlexiPack for electric two-wheelers and e-rickshaws while expanding into small and medium-sized energy storage systems.

The Energy Company offers batteries with fast-charging capability, compatibility with any public charger, a lifespan of up to 2,500 cycles, and second-life readiness.

Corporate funding for energy storage companies grew to $19.9 billion in 116 deals in 2024, compared to $19 billion in 120 deals in 2023, according to Mercom Capital Group’s Annual and Q4 2024 Funding and M&A Report for Storage & Grid.

Several EV battery firms in India have raised funds in recent months, even as EV sales in India reached a record 1.95 million units in 2024, an over 27% growth year-over-year against the 1.53 million units sold in 2023. EVs accounted for 3.6% of overall automobile sales, according to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard.

According to BloombergNEF (BNEF), battery prices for electric vehicles fell below the $100/kWh threshold for the first time, averaging $97/kWh, in 2024. While EVs have achieved price parity with combustion vehicles in China, they remain more expensive in many other markets. BNEF projects that more segments will reach price parity globally as lower-cost batteries become increasingly available.

Another BNEF report said prices of lithium-ion battery packs dropped by 14% to a record low of $139/kWh in 2023 due to falling raw material and component prices.