Exponent Energy bags Rs 200 crore funding as it pivots from charging startup to energy company

Bengaluru-based Exponent Energy has raised Rs 200 crore ($21.1 million) in a funding round co-led by 360 ONE Asset and TDK Ventures, as the electric mobility infrastructure startup looks to expand beyond charging technology and build what it calls the “energy backbone” for India’s commercial EV ecosystem. 

The round also saw participation from Hitachi Ventures, which is making its first investment in India’s energy sector, along with existing investors including Eight Roads Ventures, Lightspeed, 3one4 Capital, AdvantEdge VC and YourNest. With the latest raise, Exponent’s total funding since inception stands at $65.7 million. 

Exponent 2.0 takes shape

The fresh capital comes at an inflexion point for the six-year-old company, according to founder and chief executive Arun Vinayak.

“The first five years were about building the core technology and proving rapid charging works reliably. Exponent 2.0 is about leveraging that foundation to build a category-defining energy company for electric mobility,” Vinayak said. 

In an interview with Business Today, Vinayak said the company is transitioning from being an energy technology startup focused on R&D to a full-fledged energy company focused on scale.

“This round comes at an inflexion point where Exponent is going from an energy tech company to an energy company,” Vinayak told Business Today. “What that means is no more building for tech, but actually being a large energy company having a large network that people can depend upon and rely upon.” 

Beyond batteries and chargers

Exponent currently operates primarily in two cities and plans to use the capital to expand geographically while entering new vehicle categories. The company is preparing to launch its bus charging platform this year and is also pushing into vehicle retrofitting, allowing existing internal combustion engine vehicles to be converted into electric vehicles powered by Exponent’s technology. 

According to Vinayak, retrofitting has emerged as an unexpectedly strong growth lever.

“People are loving the retrofit. The capex is so much lower. It’s an overnight solution,” he said, adding that a retrofit costs roughly Rs 1.7 lakh compared to around Rs 3.5 lakh for a new vehicle. 

Solving the financing gap

The company’s long-term ambition extends beyond charging infrastructure. Earlier this year, Exponent launched Exponent One, a financing and asset management platform aimed at addressing one of the biggest barriers to commercial EV adoption.

“I think it’s about energy and financing. These are the two problems that are unsolved in commercial vehicles,” Vinayak said. “Drivers are able to adopt. The problem is that they don’t have parking or charging at home. So where do they charge? And they, of course, need a financing ecosystem to power them up.” 

Exponent’s integrated approach combines batteries, charging infrastructure, software and financing. While the broader EV industry has increasingly pushed for interoperability and open charging standards, Vinayak argues that tightly integrating batteries and charging infrastructure is necessary to deliver reliability.

Artificial intelligence is also beginning to play a growing role in Exponent’s operations. Vinayak said the company is using AI to improve battery management, optimise charging infrastructure and accelerate product development.

IPO on the horizon?

While Vinayak declined to provide a timeline for a public listing, he indicated that an IPO remains part of the company’s long-term plans.

“We definitely have that on our minds,” he said. “But it’s very hard to put a date to it right now.”