Battery Swapping Company RACEnergy Raises $3 Million in Pre-Series A Round
The funds will be used to develop its technology and build new facilities
May 9, 2023
Hyderabad-based deep-tech battery swapping company RACEnergy raised $3 million in a combination of debt and equity in a pre-series A round funding.
Growx Ventures led the funding round, with participation from Micelio Mobility, Huddle, and several angel investors.
RACEnergy has raised $6 million in funding to date. It intends to use the funds to develop its battery-swapping technology and construct new facilities to support its growing operations.
The company said its swappable battery technology recently cleared the AIS-156 Phase 2 certification.
“We are humbled by our investors’ confidence in our technology and its potential to drive the adoption of electric mobility across India. The capital will enable our expansion to new markets and further develop our swapping technology for two-and-three wheelers. It will also help scale our operations with a new facility in the pipeline,” said Arun Sreyas, Co-Founder of RACEnergy.
RACEnergy claims its technology allows discharged batteries to be swapped in 4 seconds, providing users with longer periods on the road. It has completed 3 million green kilometers and facilitates 500 swaps daily on its network.
NITI Aayog has proposed a policy to promote battery swapping using advanced chemistry cell batteries to decouple battery costs from the upfront costs of buying electric vehicles. The policy also sets technical standards for components’ interoperability within a battery-swapping ecosystem. The policy would use regulatory levers to de-risk the battery-swapping ecosystem and unlock access to competitive financing.
Last September, the Ministry of Road Transport and Highways issued amendments providing additional safety requirements related to battery cells, battery management systems, onboard chargers, battery pack design, and thermal propagation due to internal cell short circuits leading to fires.
Chhattisgarh, Rajasthan, and Punjab have all issued their electric vehicle policies outlining incentives for battery swapping stations, and the building of charging infrastructure in their respective states.