Battery Smart — a market leader in facilitating battery swapping for two and three-wheeler electric vehicles (EVs) in India — reached a significant landmark last month. On 7 August, the Delhi-based venture founded by IIT Kanpur graduates Pulkit Khurana and Siddharth Sikka announced that it had surpassed one lakh daily swaps on its network of over 55,000 drivers.
Since the launch of its first swap station in Janakpuri, New Delhi, in June 2020, Battery Smart has rapidly expanded its network. With 1,200 stations now spread across more than 35 cities in India, the Delhi-based electric mobility venture has emerged as a leading player in the battery swapping sector, surpassing 45 million cumulative swaps to date, they claim.
Founded in 2019, the objective of establishing Battery Smart was to make “EV adoption simple, economical and accessible through a unique partner-led model”, says Siddharth.
What battery swapping technology does for the electric mobility sector in India is address anxieties over the cost of EVs (since batteries make up as much as 40% of the production cost of a typical EV), lack of adequate charging infrastructure, and the time taken to charge vehicles.
In the context of India’s e-mobility sector dominated by two and three-wheelers that are primarily deployed for public transit, freight transport, and last-mile delivery/connectivity, battery-swapping technology makes more sense. With smaller vehicles comes a requirement for batteries that are lighter to carry, and therefore swap. Also, drivers of these don’t have to wait for a few hours to charge their vehicles and can instead swap their old batteries for charged ones in a few minutes. These features are especially useful for fleet operators, last-mile delivery persons, etc.
Speaking to The Better India, Pulkit Khurana, co-founder, discusses his venture, which recorded a revenue of Rs 63.5 crore in FY23, and their journey thus far.
Plugging gaps in the market
Spending more than a decade in the logistics and shared mobility sectors, and engaging in policy consulting before establishing Battery Smart, Pulkit and Siddharth regularly gathered information about the e-mobility sector. They learnt that there were major gaps in it.
“When we started, we noticed that over 2.5 million electric rickshaws in India were powered by lead-acid batteries, serving nearly 70 million people for first and last-mile commutes. We recognised that high upfront costs were a significant barrier to adopting electric vehicles in a cost-conscious market like India,” recalls Pulkit, in a conversation with The Better India.
“Lead acid batteries require replacement every six months, making it a recurring capital expenditure problem for drivers. Moreover, drivers often spend 10 to 12 hours every night charging their batteries and another 3 to 4 hours to top it up during the day. Our goal was to upgrade the existing solution with better technology. Battery swapping emerged as the solution, as it eliminates the need for end users to own the battery, reducing upfront costs by as much as 40%,” he adds.
Unlike multiple ventures at the time that decided to get into the business of manufacturing EVs and chargers, Pulkit and Siddharth ventured into battery-swapping technology.
“Although manufacturing chargers and vehicles is an exciting field, we chose to focus on addressing key challenges such as range anxiety, charging downtime, and high costs. By partnering with over ten leading OEMs (original equipment manufacturers) working on battery development and manufacturing, we can stay ahead of the curve with changing technology. We always have the option to evaluate and choose from the best battery technology,” he says.
How do Battery Smart’s swapping stations operate?
As Pulkit explains, “We use interoperable batteries for electric two and three-wheelers, allowing users to easily locate the nearest swapping station via the Battery Smart app. Our goal at Battery Smart is to build a dense network of swap stations by ensuring EV users are within a one-kilometre radius of a station with zero wait time. At the station, EV users on the Battery Smart network can quickly exchange their depleted battery for a fully charged one in under two minutes, and conveniently pay for each battery swap directly through the app.”
“Using a battery-as-a-service model, we are making EV ownership more accessible and affordable. Our partner-led approach enables us to leverage existing infrastructure by partnering with small businesses and corner shops to rapidly expand our network and help boost their incomes. This has enabled us to expand our network to Tier 1, 2, and 3 regions in India, where charging infrastructure is limited,” he adds.
As their batteries are interoperable, Battery Smart claims to serve over 200 vehicle models with a single type of battery.
“The idea was to ensure that new users have a smooth transition from their internal combustion engine (ICE) vehicles to EVs. Battery swapping allows them to mimic the refuelling experience, by replacing the depleted battery with a fully charged battery in under two minutes. This ensures that the adoption of electric mobility is simple and efficient, leading to greater savings in time, covering longer distances, and increasing incomes,” notes Pulkit.
A single swap would cost users between Rs 100 and Rs 150, and it offers a range of over 60 km, claims Siddharth. EV users can also opt for various subscription plans that suit their needs. “The vehicles have smart meters, which indicate to the users when to swap, and the rest — from locating the nearest swap station to payment — can be done on the Battery Smart app,” he adds.
Elaborating on the batteries they deploy, Pulkit says, “The lithium-ion batteries we use are smart and interoperable, making them compatible with electric three and two-wheelers. These batteries are produced by different battery manufacturers but are identical in specifications and dimensions. This means that from a customer’s perspective, the same model of batteries is being swapped. We source our batteries from over 10 Lithium-ion battery OEMs in India based on their recent track record to ensure quality and reliability.”
But how much does it cost to set up one battery swapping station?
“As mentioned, we have a partner-led model, where we leverage the existing infrastructure and collaborate with local businesses to set up swap stations at a rapid pace, without the need for commissioning new real estate and can now open three to four stations every day,” claims Pulkit.
“It usually takes six weeks for a station to go live. Our partners only have to pay a licensing fee, while the rest, including all investments in chargers and batteries, is done by Battery Smart. Through this model, the partners are typically able to break even on their upfront fee within one year and get three years to operate under the standard agreement. Currently, through our partner network of 1,200 swap stations, we do one lakh swaps a day,” he adds.
Ensuring compatibility with different EV models
As a battery-swapping venture catering to two and three-wheeler EVs, how does a venture like Battery Smart ensure such compatibility?
“As we offer batteries through a Battery-as-a-Service model, we enable users to overcome common barriers to EV adoption. These batteries we use are interoperable and serve over 200 vehicle models with a single type of battery. So, while they may be produced by different OEMs the specifications and dimensions will be uniform,” explains Pulkit.
“The swappable batteries are around 2 to 2.5 kWh in capacity, and weigh about 12 to 15 kg. The smaller batteries result in lower weight of the electric two-wheeler and yield better energy efficiency and greater range on the available charge. An electric two-wheeler is designed to run with one battery, whereas vehicles, such as e-rickshaws and e-autos, can be fitted with up to two such batteries, depending on their energy consumption and range requirements,” he adds.
He also goes on to state, “Our partner OEMs provide warranty, performance and safety on their products, and while we conduct quality testing on them before rolling it out into the market. We invest significantly in developing safe Battery Management Software (BMS) technology, which is essential for effectively managing swappable batteries.”
Addressing other key challenges
One of the biggest challenges for Battery Smart has been keeping up with demand. They currently have a long waitlist of users and partners getting onto the Battery Smart network.
“Throughout our journey spanning the last five years, we have been committed to safe EV adoption. Station partners responsible for handling batteries must undergo comprehensive training programs. They need to learn how to secure the vehicle’s battery correctly, connect it to the charging dock, and respond in emergencies. It is vital to train customers and partners to preserve the battery’s physical integrity, as even minor damages can significantly impact its performance. Adhering to OEM-approved chargers ensures proper battery charging guidelines are followed, promoting compatibility and safe usage,” says Pulkit.
To that end, Battery Smart claims to have put in place comprehensive protocols that prioritise the safety of both drivers and station operators. They have done this by using their BMS, which allows them to track in real-time the critical parameters of the batteries.
“We ensure that all batteries on our network have an IoT device that facilitates real-time monitoring of critical parameters, such as voltage, temperature, and current. We also offer 24×7 on-call support to our drivers and partners. In addition, we make sure that all station partners and drivers on board our network receive mandatory training programmes and refresher courses on proper battery management, storage, handling, and emergency response,” he adds.
Future of EV battery swapping
According to a report by Prescient and Strategic Intelligence, a market research venture, the Indian EV battery-swapping market stood at an estimated $10.2 million in 2022. This market is expected to reach $61.57 million by 2030–growth at a CAGR of 25.20% from 2022 to 2030.
“In India’s last financial year, Indians bought over 28 million vehicles, 12.5% more than the previous year. Whether these consumers choose an internal combustion engine (ICE) vehicle over an electric vehicle and choose battery swapping over traditional charging methods largely comes down to cost. Additionally, battery charging requires high upfront expenditure, longer downtimes, parking and charging facilities (more area), which can dissuade drivers from switching to electric alternatives, especially in Tier 1 and Tier 2 cities,” explains Pulkit.
“EVs currently account for 20% of India’s last-mile delivery market, moving towards the Government’s target of 30% vehicle fleet electrification by 2030. On our roads, we can see that a significant number of fleet operators have moved to electric mobility. This is true for Tier 1, Tier 2 and Tier 3 cities. They are gaining from the zero-charging downtime, a unique advantage of battery swapping which helps drivers save time and stay on the road longer,” he adds.
(Edited by Pranita Bhat; Images courtesy Battery Smart)
