Battery Smart, the Gurugram-based battery swapping operator, has raised $29 million in its latest Series B funding round, led by New York-based private equity firm Rising Tide Energy, with participation from responsAbility, Ecosystem Integrity Fund, and LeapFrog Investments. The fresh capital will fuel the company’s expansion into new cities and strengthen its network in existing markets, as India’s battery swapping sector experiences a revival driven by commercial fleet demand and supportive government policies.
Market Leadership and Growth
Founded by Pulkit Khurana and Siddharth Sikka, Battery Smart operates over 1,500 swapping stations across 321 locations in Delhi and beyond, serving electric two- and three-wheelers through a lithium-ion battery swapping network. The company claims a 36% market share, making it India’s largest battery swapping network for these vehicle segments. With more than 68,000 EV drivers onboarded and over 74.9 million swaps completed, Battery Smart’s pay-per-use model and dense station network have enabled rapid adoption, especially among commercial operators who rely on minimizing downtime and maximizing vehicle utilization.
Funding Momentum and Commercial Focus
The $29 million funding round comes as battery swapping gains traction in India’s commercial EV segment, where last-mile delivery vehicles and three-wheelers dominate and economics are favorable. Unlike previous global attempts at battery swapping that faltered due to a lack of standardization and low passenger car adoption, India’s model focuses on high-usage commercial vehicles, which benefit most from rapid turnaround and predictable routes. Battery Smart’s approach directly addresses the need for high battery turnover to justify infrastructure costs, a lesson learned from global failures like Better Place and Tesla’s Model S swap experiments.
Business Model and Economic Impact
Battery Smart’s subscription-based “battery-as-a-service” (BaaS) model separates battery costs from vehicle ownership, reducing upfront EV prices and making electric mobility more accessible in price-sensitive markets. Commercial fleet operators can reduce operational costs by 20–30% compared to conventional charging, thanks to higher vehicle utilization and reduced downtime. The company’s rapid expansion is further validated by a 196% revenue surge to INR 164 crore ($19.7 million) in FY24, though losses also doubled to INR 120 crore ($14.4 million), reflecting the capital-intensive nature of building a swapping network.
Competitive Landscape and Policy Support
Battery Smart competes with players like VoltUp, SUN Mobility, and Mooving in a market that is consolidating around commercial applications. India is emerging as a global leader in battery swapping, second only to China, with government guidelines and subsidies supporting the rollout of swapping stations, especially in dense urban areas where space constraints limit charging infrastructure. The Ministry of Power’s recent guidelines promote interoperability, safety, and business model innovation, further boosting investor confidence and market growth.
Future Outlook
The Indian battery swapping market is projected to grow from $1.46 billion in 2025 to $22.72 billion by 2035, at a CAGR of 31.5%. Battery Smart’s continued focus on commercial fleets, dense urban deployments, and technology-driven operations positions it to capitalize on this growth. As the company expands its network and partnerships, it is poised to play a pivotal role in India’s transition to sustainable, efficient electric mobility.
