Battery Smart Plans IPO Filing

Battery Smart, a battery-swapping network for electric two- and three-wheelers, is set to file draft papers with the Securities and Exchange Board of India (Sebi) in September or October for an initial public offering (IPO). The company has appointed SBI Capital Markets as the lead merchant banker for the proposed public issue.

The filing of draft papers with Sebi is expected to take place around September or October, using FY26 and June quarter financials. Battery Smart is targeting annual growth of 70-80 per cent over the next three to five years, driven by deeper penetration in existing cities and expansion into new markets.

Backed by investors, including Tiger Global, Blume Ventures, LeapFrog Investments, and Ecosystem Integrity Fund, the company achieved operational break-even in FY26 while continuing to expand its network across the country. Battery Smart currently owns more than 3 lakh lithium-ion batteries and operates over 1,500 swapping stations across more than 75 cities, serving nearly 1 lakh commercial electric vehicle drivers.

The company operates a battery-as-a-service model that allows commercial EV drivers to exchange discharged batteries for fully charged ones at its swapping stations, reducing charging downtime. Nearly 90 per cent of its stations are operated by franchise partners, with local entrepreneurs investing in station infrastructure while Battery Smart provides batteries, technology, operating systems, and network intelligence.

As of FY26, the company had raised around USD 192 million (over Rs 1,600 crore) from investors, including a USD 65 million Series B round and a USD 29 million extended Series B round. Its operating revenue rose 52 per cent to about Rs 250 crore in FY25 from Rs 164 crore in FY24.

Battery swapping is emerging as an alternative to conventional charging, particularly for high-utilisation commercial vehicles. Under the model, battery ownership is separated from vehicle ownership, helping lower the upfront cost of an EV while allowing drivers to replace depleted batteries within minutes instead of waiting for them to recharge.

The company's growth plans and expansion into new markets are expected to drive its revenue and profitability in the coming years. With its unique battery-as-a-service model and strong investor backing, Battery Smart is well-positioned to capitalize on the growing demand for electric vehicles in India.

The IPO filing is a significant milestone for Battery Smart, and the company's listing on the stock exchange is expected to provide a boost to the Indian EV industry. As the company continues to expand its network and services, it is likely to play a key role in promoting the adoption of electric vehicles in the country.

In terms of significance, Battery Smart's IPO plans are a testament to the growing importance of the EV industry in India. The company's success will depend on its ability to execute its growth plans and expand its services to new markets. With its strong investor backing and unique business model, Battery Smart is well-positioned to achieve its goals and make a significant contribution to the Indian EV industry.

Overall, Battery Smart's plans to file for an IPO are a positive development for the Indian EV industry, and the company's growth and expansion plans are expected to drive its revenue and profitability in the coming years.