Simple Energy Secures $10 Million in Bridge Funding for Retail Expansion
Electric two-wheeler manufacturer Simple Energy has raised $10 million in an all-equity bridge funding round led by Dr. Arokiaswamy Velumani. The company plans to allocate 80% of the funds for expanding its store and service center network across India, with the remaining 20% for marketing and R&D. Simple Energy aims to increase its stores from 53 to 150 and establish 200 service centers. The company has also launched new models, including Gen 1.5 of Simple One and Simple OneS. With this funding, Simple Energy's total raised capital reaches $51 million, and the company is planning a $350 million IPO for further growth.
*this image is generated using AI for illustrative purposes only.
Bengaluru-based electric two-wheeler manufacturer Simple Energy has successfully raised $10 million in an all-equity bridge funding round, marking a significant step in its growth strategy. The funding, led by existing investor Dr. Arokiaswamy Velumani, founder of Thyrocare's Family Office, also saw participation from investors Balamurugan Arumugam and the Haran family office.
Allocation of Funds
The company has outlined a clear plan for utilizing the newly acquired capital:
- 80% of the funds will be directed towards expanding Simple Energy's network of stores and service centers across India.
- The remaining 20% will support marketing initiatives and research and development efforts.
Company Background
Founded in 2019 by Suhas Rajkumar, Shreshth Mishra, and Ankit Gupta, Simple Energy has quickly established itself in the electric two-wheeler market. The company operates a manufacturing facility in Hosur, Tamil Nadu, with an annual production capacity of 150,000 vehicles.
Product Portfolio
Simple Energy has recently expanded its product line:
- The company launched Gen 1.5 of its Simple One model, featuring a 248 km IDC range.
- The Simple OneS was introduced, offering a 181 km IDC range.
Current Operations and Expansion Plans
Simple Energy currently maintains a presence in seven cities with 53 showrooms. The company has set ambitious expansion targets:
- Aim to increase the number of stores to 150.
- Plans to establish 200 service centers.
Funding History and Future Plans
This latest funding round brings Simple Energy's total raised capital to $51 million. Looking ahead, the company has its sights set on going public:
- Simple Energy is planning an Initial Public Offering (IPO).
- The IPO is expected to target $350 million, with funds earmarked for manufacturing expansion and growth initiatives.
This recent funding round and the company's ambitious expansion plans underscore Simple Energy's commitment to strengthening its position in India's growing electric vehicle market. As the company continues to innovate and expand its reach, it will be interesting to watch how it navigates the competitive landscape of the electric two-wheeler sector in the lead-up to its planned IPO.
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