Simple Energy raises Rs 1,750 cr, eyes 30,000 units a month

BENGALURU: Electric two-wheeler maker Simple Energy has raised Rs 1,750 crore ($180 million) in an all-equity Series C round, as the Bengaluru-based company looks to scale manufacturing, distribution and product development amid intensifying competition in the EV market.The round was led by the family office of Thyrocare founder Arokiaswamy Velumani, with participation from founder and CEO Suhas Rajkumar, co-founder and CFO Ankit Gupta, Bengaluru-based HNI Amit Mishra and the Haran Family Office. Simple has now raised over Rs 2,530 crore in total.Simple currently has installed production capacity of 10,000 units a month, according to its updated release. Co-founder Shreshth Mishra told TOI that actual production is currently around 2,500 vehicles a month, while retail sales are roughly 1,800-2,000 units. The company is seeing monthly demand of around 4,000-4,500 vehicles, he said.“Demand is almost double of what we are able to supply,” Mishra said. Simple plans to eventually take monthly manufacturing capacity to around 30,000 units and above, while expanding its sales and service network across tier-I and tier-II cities.The company has more than 80 outlets across over 60 cities, but the south still contributes an estimated 60-70% of sales, Mishra said. Simple now plans to expand more aggressively across the north, west, central and northeastern markets.The fresh capital will be deployed across marketing, supply chain, R&D and hiring, the company said. Simple has also spoken of expanding manufacturing and its distribution and service network as it prepares for its next product cycle.Mishra said the company did not actively seek a large PE, global VC or strategic automaker for the round as existing backers were willing to provide the capital. “Existing investors showed a lot of interest and faith in the growth of the organisation, so we never had to go out or discuss with somebody as a strategic investor at this point of time,” he said.He also expects the electric two-wheeler industry to consolidate as the market matures. “There would be consolidation at some point of time,” Mishra said, adding that surviving players would need control over technology alongside capital, distribution and service capabilities.Simple is also evaluating a future public listing, though Mishra said the immediate focus remains on scaling the business and becoming self-sustainable before deciding the timing of an IPO.You use AI every day. Now get your AI Quotient. Take the AIQ test.