Energy-tech start-up Exponent Energy has raised $26.4 million in a series B round led by Eight Roads Ventures, including a strategic investment from TDK Ventures. The round also witnessed participation from existing investors like Lightspeed, YourNest VC, 3one4 Capital, AdvantEdge VC, and the family office of Dr Pawan Munjal, Executive Chairman, Hero MotoCorp. 

Founded three years ago, the Bengaluru-based start-up has secured a total funding of $44.4 million to date. It plans to use the new funds to expand to five new cities by the fiscal year 2024 and intends to enter the intercity e-bus segment in 2024.

Led by Arun Vinayak and Sanjay Byalal, Exponent Energy aims to simplify energy for EVs. It aims to deploy 1,000 e^pumps (charging stations) and have 25,000 electric vehicles (EVs) powered by its technology by 2025. The company claims to offer 15-minute rapid charging and provides a 3,000-cycle life warranty for EVs, the company added in its statement. 

Commenting on the investment, Aditya Systla, Partner at Eight Roads Ventures, said, “Exponent’s focus on the Indian commercial vehicle space is a massive opportunity which constitutes 10 per cent of vehicles but consumes 70 per cent of the on-road energy, with more vehicles transitioning to electric over the next few years. As our first investment in the electric vehicle sector in India, we’re very excited to partner with Arun, Sanjay, and the entire Exponent team as they build one of the largest full-stack energy platforms in the country.” 

Speaking about the fundraising, Arun Vinayak, co-founder and CEO of Exponent Energy, said, ” We’re excited to welcome Eight Roads & TDK to our cap table and grateful to all our existing investors who’ve supported us since Exponent’s inception. The last 3 years were an incredible journey of building world-class tech, achieving product market, and unlocking freedom & flexibility for our customers in logistics. With this round, we’re set to scale operations from battery manufacturing to on-ground network presence across categories and cities, and simplify the broken energy ecosystem at scale.” 

Sharing insights on the investment, Nicolas Sauvage, president of TDK Ventures, said, “I was impressed by Arun and his talented team when I met them in their office in Bengaluru earlier this year. Exponent's groundbreaking achievement in crafting an economical and scalable 15-minute rapid charging solution utilising standard LFP cells is revolutionary, allowing electric vehicles to adopt a more compact battery pack that can swiftly charge within a concentrated public charging infrastructure, effectively removing range anxiety. We share the vision of expanding rapid charging accessibility at a reasonable cost, making electric mobility an option for everyone. This collaboration represents an exciting stride toward a more sustainable and electrified future."