Equirus InnovateX Fund Leads PointO’s Rs 6.2 Cr Seed Round to Propel Growth in Lithium Battery Ecosystem

• ByStartupStory     |    May 1, 2024

Lithium battery ecosystem start-up PointO has secured a significant seed funding of Rs 6.2 crore in a round led by Equirus InnovateX Fund (EIF). This investment marks a pivotal moment for PointO as it aims to further develop a comprehensive lithium battery ecosystem, encompassing manufacturing, financing, and servicing of lithium batteries.

PointO’s primary focus is on facilitating the adoption and financing of lithium batteries for e-rickshaw owners in Tier II+ cities. This initiative aims to address the low adoption rates due to operational and financial complexities prevalent in this segment.

Over the past year, PointO has witnessed exceptional growth, expanding its operations by 7x. Looking ahead, the company plans to extend its physical presence by establishing centers in more than 10 cities within the next 12 months, as stated by a company spokesperson.

“In the last decade, e-rickshaws have created opportunities for millions by doubling their livelihoods, replacing traditional rickshaws….By offering higher mileage and reducing the cost of capital, we aim to potentially triple or quadruple e-rickshaw drivers’ take-home income,” remarked Riki Biswas, Founder and CEO of PointO.

India has seen a rapid shift towards e-rickshaws for last-mile connectivity, with over 2.4 million e-rickshaws currently operational, replacing traditional rickshaws. This market is projected to grow at an impressive 32 per cent compound annual growth rate (CAGR) from 2021 to 2032, reaching a valuation of $27.5 billion.

Given that lithium batteries constitute a significant portion (60–70 per cent) of the total cost of ownership and with increasing sustainability concerns favoring lithium over lead-acid batteries, PointO is strategically positioned to capture substantial market share and drive transformation within the industry.

The EIF’s investment in PointO is part of its broader strategy to support seed-stage tech companies. Launched in January, EIF is a $25 million investment vehicle dedicated to backing emerging companies in sectors like software as a service (SaaS), deep tech, fintech, and other B2B domains.

The fund’s approach is centered around investing in companies with proven monetization strategies, sustainable business models, and the capability to address critical challenges within sizable markets. This investment in PointO reflects EIF’s commitment to fostering innovation and growth in promising ventures.

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