Bengaluru-based electric vehicle (EV) charging and battery startup Exponent Energy has raised $26.4 million in a series B funding round led by Eight Roads Ventures and a strategic investment from TDK Ventures, marking their debut investment in India’s EV sector.

The company plans to utilize the fresh funding to expand its presence to five new cities by the fiscal year 2024. The startup aims to diversify its electric three-wheeler (e3W) space offerings and enter the intercity e-bus segment in 2024.

By 2025, Exponent envisions deploying 1,000 charging stations and powering 25,000 EVs with their innovative technology.

The latest funding brings Exponent’s total capital raised to $44.4 million.

Exponent Energy’s proprietary energy stack, including the battery pack, charging station, and connector, enables a 0%-100% rapid charge in just 15 minutes for EVs.

Founded three years ago, the startup gained attention for its 15-minute rapid charging solution coupled with a 3,000-cycle life warranty using standard Li-ion cells. The technology is said to address key challenges in EV adoption—reducing charging time and enhancing battery life, contributing to the widespread transition to electric mobility.

The series B round also saw participation from existing investors, including Lightspeed, YourNest VC, 3one4 Capital, AdvantEdge VC, and the family office of Dr. Pawan Munjal, Executive Chairman of Hero MotoCorp.

New global investors also joined the round, reflecting the industry’s growing interest in Exponent’s innovative approach to EV charging infrastructure.

Arun Vinayak, Co-founder & CEO of Exponent Energy, said, “We’re excited to welcome Eight Roads and TDK to our cap table and grateful to all our existing investors who’ve supported us since Exponent’s inception. With this round, we’re set to scale operations from battery manufacturing to on-ground network presence across categories & cities and simplify the broken energy ecosystem at scale.”

Aditya Systla, Partner, Eight Roads Ventures, said, “Exponent’s focus on the Indian commercial vehicle space is a massive opportunity which constitutes 10% of vehicles but consumes 70% of the on-road energy, with more vehicles transitioning to electric over the next few years.”

In August last year, the company secured $13 million in its Series A funding round led by Lightspeed Venture Partners and participation from existing investors like YourNest VC, 3one4 Capital, and AdvantEdge VC.

According to Mercom Capital Group‘s recently released report titled 9M and Q3 2023 Funding and M&A Report for Storage and Grid, in the third quarter of 2023, VC funding for smart grid companies declined by 86% year-over-year to $248 million across 11 deals.