On Monday, July 29, 2024, the Electric vehicle (EV) start-up Simple Energy announced that it has successfully raised USD 20 million in a Series A funding round. Simple Energy plans to use these funds to increase the production of its electric scooters. They are majorly planning to expand two of its products, the Simple One and Simple Dot One.
Series A Funding Explained
The Series A funding round follows the initial Seed Round. When a company goes for Series A funding, it signifies that the business is on solid ground and is ready to scale its products.
Investors Behind the Round
The funding round saw participation from the company’s existing investors. High-net-worth individuals (HNIs) participated from family offices such as the Haran family office, A Velumani’s family office, Vasavi family office. Desai family office, which is a part of the promoter group of Apar Industries also contributed to the round.
Plans for the Funds
The raised funds will primarily be used to scale up the production of Simple Energy’s e-scooters. The money will support the company’s entry into new markets, expand its presence across India and help in developing new products.
Company’s Vision
Suhas Rajkumar, Founder and CEO of Simple Energy, emphasized the company’s commitment to playing a significant role in the growing EV ecosystem in India. He stated, “As the adoption of electric vehicles accelerates significantly in India, we are committed to playing a pivotal role in this burgeoning ecosystem.”.
Expanding Production and Dealership Network
Rajkumar mentioned that the new capital would be strategically used to boost production capacity and expand the dealership network nationwide. Simple Energy aims to achieve a top line of INR 150 crore in this financial year.
Future Growth Plans
Balamurugan Arumugam, Chief Growth Officer at Klarity and one of the investors, expressed confidence in Simple Energy’s future. He said, “We have a clear vision and a strategic roadmap for the next phase of growth. Simple Energy is primed to redefine the landscape of technologically advanced EV two-wheelers in India and beyond.”
Manufacturing and Expansion
Simple Energy claims that the Simple One is India’s longest-range electric scooter. It manufactures 95% of its scooter components in-house and has a “state-of-the-art” motor manufacturing line within its 200,000-square-foot plant in Shoolagiri, Tamil Nadu.
Current Operations
Currently, Simple Energy is in the pilot phase in Bangalore and has started deliveries in the city. The company is preparing to open dealership stores in several cities including Bangalore, Mysore, Chennai, Vijayawada, Goa, Vizag, Kochi, Mumbai, Pune, Ahmedabad, Surat, Delhi, and Hyderabad in the coming weeks.
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Previous Funding Rounds
In February this year, Simple Energy raised over USD 20 million in its ongoing Bridge round. Prior to that, in October 2021, the company raised USD 21 million. In a Pre-Series funding round, it raised an undisclosed amount in March, 2022.
With the recent funding and a strategic growth plan, Simple Energy is well-positioned to become a leader in the EV market in India. They also have the potential to reach on a global scale.
About the Author
Mr. Radhesh Tarang Shah, is a management student at Institute of Management, Nirma University. He has a passion for writing articles and poems. He has experience as a financial analyst, author, news writer, marketer and social worker.
