RACEnergy Secures Funding to Further Develop Its Battery Swapping Technology for EVs
- ByStartupStory | May 9, 2023
RACEnergy, a deeptech startup specializing in battery swapping, has recently secured $3 million in a Pre Series A funding round that combines debt and equity. Leading the investment is growX ventures, along with participation from Micelio Mobility, Huddle, and a group of angel investors. The funding will be used to further enhance RACEnergy’s battery-swapping technology and expand its operations by establishing new facilities.
In addition, the funding raised will allow RACEnergy to expand its market reach and enhance its battery-swapping technology for two- and three-wheeled vehicles, according to Arun Sreyas, one of the startup’s co-founders. The capital infusion will also aid in the company’s growth by facilitating the establishment of a new facility, which will enable it to scale up its operations.
RACEnergy, an EV solutions provider that offers battery-swapping technology for electric two and three-wheelers, was established in 2019 by Arun Sreyas and Gautham Maheswaran, both alumni of BITS Pilani. The company is collaborating with national and state-level partners such as HPCL and Hala Mobility to expand its network of battery-swapping stations across India.
In 2021, RACEnergy secured $1.3 million in a seed funding round led by Micelio Fund and growX ventures, with participation from Huddle, Prophetic Ventures, and other investors. The recent funding round brings the total funding raised by the electric vehicle solutions provider to $6 million.
RACEnergy seeks to tackle the challenges of electric mobility, including high vehicle costs, lengthy charging periods, and range anxiety. The company asserts that it has covered a distance of 3 million green kilometers and facilitates 500 swaps on its network every day.
Battery swapping is gaining traction in the EV industry, particularly in last-mile delivery and logistics use cases, with RACEnergy vying for market share against competitors like Esmito and Chargeup. According to reports, Rapido recently collaborated with RACEnergy, a battery-swapping and tech startup, to introduce e-autos equipped with battery-swapping technology in Hyderabad. These vehicles are slated to be operational by the close of 2023.
RACEnergy has recently revealed that its swappable batteries have successfully passed the AIS 156 Phase 2 certification, which was conducted at the Automotive Research Association of India (ARAI). Meanwhile, the Indian government’s draft policy on battery swapping for EVs, which was unveiled last year, is being revised in response to industry concerns about the suggested regulations concerning battery interoperability. The funding injection arrives at an opportune moment for RACEnergy.
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