Lithium battery startup PointO has secured ₹62 million (~$743,236) in seed funding, with Equirus InnovateX Fund (EIF) leading the round with an investment of ₹50 million ($599,364).

The funds are expected to enable the company to build a full-stack lithium battery ecosystem, including manufacturing, financing, and servicing lithium batteries. Led by IIT-Guwahati alumni, PointO plans to expand its physical centers to more than ten cities in the next 12 months.

While the initial focus is on financing lithium batteries for e-rickshaw owners in Tier-II cities, PointO is tackling the low adoption problem in this segment due to operational and financial complexities.

“In the last decade, e-rickshaws have created opportunities for millions by doubling their livelihoods, replacing traditional rickshaws. At Pointo, we strive to replicate this impact with the introduction of lithium-ion batteries. By offering higher mileage and reducing the cost of capital, we aim to potentially triple or quadruple e-rickshaw drivers’ take-home income,” said Riki Biswas, Founder and CEO of PointO.

According to PointO, India’s rapid transition to e-rickshaws, mainly for last-mile connectivity, has led to over 2.4 million e-rickshaws currently operating and replacing their traditional counterparts.

The market for e-rickshaws is projected to deliver a staggering 32% Compound Annual Growth Rate (CAGR) between 2021 and 2032, reaching a value of $27.5 billion. With lithium batteries comprising 60-70% of the total cost of ownership and sustainability concerns driving a shift from lead-acid to lithium batteries, PointO is strategically positioned to capture significant market share and drive industry-wide transformation, the release said.

“PointO’s innovative approach and strong execution capabilities align perfectly with EIF’s vision of supporting visionary founders and catalyzing innovation,” said Sunder Nookala, Early-Stage VC and Head of Tech and Digital at Equirus.

EVs have dominated the use of lithium-ion batteries, driving 90% of the increase in demand from 2015 to 2023, the International Energy Agency said.

In a report released by NITI Ayog last August, the cumulative capacity of lithium-ion batteries in India across sectors is estimated to reach nearly 600 GWh by 2030.

According to Mercom Capital’s recently released Q1 2024 Funding and M&A Report for Storage and Grid, the global energy storage sector witnessed a 432% increase year-over-year in corporate funding, totaling $11.7 billion across 29 transactions, from $2.2 billion in 27 deals.