New Delhi, India | October 9, 2024
Urja Mobility, a rapidly growing EV battery leasing startup, has raised INR 100 crore (approximately $12 million) in its pre-Series A funding round. The funding, a combination of debt and equity, was led by Mufin Green Finance Limited and its parent company Hindon Mercantile Limited. This new capital infusion will be instrumental in scaling Urja Mobility’s operations, expanding its product offerings, and enhancing its retail presence across India.
Key Details of the Funding Round
- Fund Allocation and Expansion Plans
The funds will be used to scale up operations, particularly to strengthen the pay-per-use battery leasing model that charges users based on the kilometers driven. Urja Mobility plans to expand its retail footprint, focusing on Tier II and Tier III cities, to make electric mobility accessible in underrepresented areas. - Product Portfolio Diversification
The startup will also utilize a portion of the funds to diversify its product portfolio and optimize its supply chain management. The goal is to provide a wide range of battery solutions that cater to the specific needs of both individual EV users and fleet operators. - Future Funding Plans
Urja Mobility has also announced plans to raise an additional INR 250 crore in Q1 2025. Founder and CEO Pankaj Chopra shared that the company will kick off the next round of funding in January 2025, aiming to close it by April 2025. The upcoming capital will focus on further expanding the retail network and enhancing the startup’s innovative offerings.
The Impact on EV Adoption
Urja Mobility’s pay-per-use model lowers the entry barriers for EV users, making electric mobility accessible and affordable. By expanding its footprint into Tier II and Tier III cities, the startup aims to increase the adoption of EVs in areas where infrastructure is still developing. The innovative approach of leasing batteries on a kilometer basis not only offers flexibility but also supports the operational efficiency of commercial EV fleets, thus driving the overall growth of the EV sector in India.
Market Context and Competition
Urja Mobility, founded in 2023, primarily serves commercial EV operators and fleet services. It competes with established players like Battery Smart, Sun Mobility, and VoltUp in the battery leasing and swapping space. With its unique model, Urja Mobility currently sells 45 MWh of energy per day, with an ambitious goal to scale up to 300 MWh daily. The recent investment surge in India’s EV battery market, projected to reach $27.7 billion by 2028, underscores the growing investor interest in this segment.
Kapil Garg, founder of Mufin Green Finance, expressed confidence in Urja Mobility’s mission, stating, “Their innovative solutions and commitment to sustainability align with our vision for India’s transition to clean energy.”
