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Simple Energy to invest Rs 45 cr for setting up production facility

Thursday, 21 Jan 2021
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Simple Energy, Bengaluru-based electric vehicle (EV) start-up, is planning to invest around Rs 45 crore in setting up a production facility. 
 
The factory will initially have a capacity to produce 50,000 vehicles in the first year of the commissioning, and will come up near Hosur in the Krishanigiri district of Tamil Nadu.
 
The company is gearing up to roll out its maiden product (electric scooter) in H1/2021. Besides launching the flagship Mark 2, the company may add another product in its portfolio during 2021. 
 
The company will raise USD eight million (around Rs 58.50 crore) in Series-A funding by March-April 2021 for setting up the plant and product launch. The plant set-up will begin from June-July 2021, post the launch.
 
The capital requirement initially is around USD 15 million for rapidly expanding business to four to five cities. 
 
The company will launch Mark 2 by H1/2021 in three prime locations, Bengaluru, Chennai and Delhi to begin with and then gradually expand to other cities such as Mumbai, Hyderabad and Kolkata. In the first year of the launch, the company expects a sales volume of 10,000 units from three cities together. 
 
The company is targeting 15 dealerships with three experience centre, one each in Bengaluru, Chennai and Delhi by March 2022. 
 
The company will also set up its own fast charging stations, Matrix, at places like Metro stations, petrol pumps and cafes and is scouting partners for such charging infrastructure.
 
It is looking at charging stations every three to four km, but it remains in initial stages, as its vehicles come with removable batteries. The company plans to install 20-25 supercharging facilities in Bengaluru in partnerships which will be universal charging stations for any type.
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