Analyzing the Financial Performance of Battery Swapping Startup Battery Smart in FY22
- ByStartupStory | March 21, 2023
In recent years, electric vehicle services have experienced significant growth in India, driven by government initiatives and the availability of charging infrastructure and battery swapping. Battery Smart, a three-year-old EV battery swapping solution provider, has finally gained momentum in the last financial year. According to the consolidated annual financial statement with the Registrar of Companies, Battery Smart’s revenue from operations surged 44 times to Rs 7.95 crore during the fiscal year ending in March 2022 from Rs 18 lakh in FY21.
Battery Smart, a three-year-old EV battery swapping solution provider, has seen a significant rise in revenue from operations in the last financial year, with a growth of 44X to reach Rs 7.95 crore. The company’s revenue is mainly generated from battery swapping services, accounting for 67% of its total revenue. Battery Smart claims to have completed over 8 million battery swaps, set up over 500 live swap stations, and has more than 13,000 customers across 12 cities. The startup provides advanced lithium-ion batteries for electric two and three-wheelers, where the batteries can be swapped with fully charged ones in just two minutes at any of its swapping stations.
Battery Smart’s lease rentals for batteries, which were the largest cost, increased significantly to Rs 4.85 crore in FY22 from Rs 15 lakh in FY21. To support its growth, Battery Smart partnered with digital investment platform Grip Invest and secured a $2 million lease financing deal to lease 4,000 batteries for e-rickshaws. The company also hired more employees, resulting in a 9X increase in employee benefit expenses to Rs 4.38 crore in FY22. Additionally, station support costs rose to Rs 3.6 crore as Battery Smart expanded its operations.
Battery Smart’s expenses rose significantly in the last financial year due to various costs related to battery leasing, employee benefits, and station support. Its expenses surged 18 times to Rs 21.46 crore in FY22 from Rs 1.18 crore in FY21. The major costs incurred by the company include lease rentals of batteries, employee benefit expenses, and ground management charges. As a result, the company’s losses increased sharply by 23 times to Rs 13.08 crore in FY22 compared to Rs 57 lakh in FY21. The company spent Rs 2.7 to earn a rupee of operating revenue in FY22.
Battery Smart, a battery-as-a-service provider for electric two and three-wheelers, has raised $44 million in two funding rounds, including $14 million in debt financing. The company is currently valued at $126 million (Rs 970 crore) and is supported by investors such as Tiger Global, Blume Ventures, Orios Ventures, and GFC. Battery Smart aims to establish a large network of swapping stations to support EVs in the two-wheeler and three-wheeler categories.
With over 8 million swaps and more than 500 stations, the company has collected critical data on the challenges and evolving markets in key Indian cities. As the EV sector grows in India, Battery Smart’s strong financial position and expanding market make it a key player to watch.
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