[YS Exclusive] EV maker Simple Energy lays roadmap for rapid store expansion, deliveries

The electric mobility sector is gaining momentum as more consumers make the switch to electric vehicles (EVs). At the same time, EV makers are making the most out of the opportunity to keep up with the demand and stay ahead of fierce market competition. 

Take for instance Simple Energy. Until two years ago, the two-wheeler EV manufacturer, founded in 2019, was testing out pilots. Today, with two models—Simple One and Simple Dot One—the company has completed over 1,900 deliveries in under a year. It has also recorded Rs 19 crore in revenue in the recent October-December quarter. 

After raising $20 million in a Series A funding round in July 2024, Simple Energy is aggressively expanding its store footprint. The Bengaluru-based company has completed around 1,900 deliveries and plans to open 150 stores and 200 service centres by the end of 2025. 

Suhas Rajkumar, Co-founder and CEO of Simple Energy, told YourStory that the EV maker is doubling down on its scooter portfolio, unlike its peers Ola Electric and Ather Energy. 

In an exclusive interview with YourStory, Rajkumar revealed Simple Energy’s plans to introduce new products, and its roadmap to disrupt the existing market hierarchy in the electric two-wheeler segment. 

Edited excerpts:

YourStory [YS]: Simple Energy recognised revenue for the first time in FY24. Could you tell us about the journey from running pilots to clocking Rs 19 crore revenue in the recent quarter?

Suhas Rajkumar [SR]: In FY24, we were still in the pilot phase and selling very few scooters because we wanted to ensure what we rolled out was what we had promised our customers. 

We had zero stores back then. We opened our first store in August last year, and by December, we had 10. This month, we have 20 stores—10 are already live, and another 10 will be live in the next eight to ten days. The new stores have started taking pre-bookings and selling our vehicles. 

Hopefully, this year, we should close with a top-line of about Rs 80 - 90 crore—roughly 12X of what we did the previous year. 

YS: You plan to aggressively expand your store footprint. How will it help you achieve your revenue target this year?

SR: We raised $20 million in July 2024, which allowed us to prioritise expanding our store network—a critical factor for any automobile company. Without a strong presence, selling scooters at scale would be impossible. 

This year, our goal is to establish 150 stores by December—40 – 45 stores by March, 70 by August, and 150 by year-end.

We also have a stringent selection process for our dealerships. We are opening all our stores with large groups who own our competitors’ or other four-wheeler brands.

So, there's a minimum criteria of turnover and experience we look for. It is a slow yet important process to develop your network because they need to be sustainable and focus on customer-oriented services.

Also Read

Bajaj Auto overtakes Ola Electric to become top two-wheeler EV company in December

YS: Why did you choose to go with the dealership model compared to owning your stores, which is something EV makers have done?

SR: The dealership model has been the traditional model—open a store, display products, and sell. We're stepping this up by investing in creating an immersive experience for customers. 

Our stores are designed as more than just sales points; they serve as experience centres, where customers can connect with the brand, learn about the products, and explore the technology behind them. But that is the only ‘X factor’. 

Otherwise, we are following the traditional route. The reason is that service matters. No matter how innovative our internal processes are, scaling to 1,000 stores or more will require a robust service infrastructure. 

We’ve learned from the challenges faced by some large players in the industry who struggled due to neglecting this aspect. Reinventing the wheel isn't necessary; instead, we’re just refining it. 

To achieve this, we’ve implemented a structured dealership model. Each dealer manages two to three stores with dedicated managers and staff, ensuring seamless daily operations. A centralised team oversees training and customer experience standards, maintaining consistency across locations.

From a financial perspective, this is an asset-light strategy, partnering with network dealers rather than owning all stores. While this means sharing margins, it keeps our balance sheet lean and ensures better scalability. 

YS: The EV sector has witnessed intense competition in recent years. How do you plan to disrupt the market and carve out a significant share of the consumer base?

SR: Over the last five months, especially in the last quarter, we’ve been performing near the industry average. Competitors are averaging around 70 scooters per store, and we’re achieving about 50, which puts us in a strong position to capture market share.

However, our real opportunity lies in the premium segment. Currently, we’re focused on scooters priced above Rs 1.5 lakh, where we compete with Ather Energy. Below that, the market is crowded with players like Ola Electric. We’re developing solutions to address the lower-end segment, with product launches planned in the coming months. 

In terms of store expansion, we’re not limiting ourselves to just Tier I cities. We’re focusing on Tier II and III markets—places like Hassan and Mandya—where stores will open next month. These regions face a range anxiety, and customers are willing to pay if the value is clear.

Simple Energy stands out with a longer range (212 km versus competitors’ 100 km), enhanced technology, and an industry-leading eight-year warranty on motors and batteries—something no other brand offers. This gives us a significant edge, where demand for premium and value-oriented EVs is strong.

We’re confident that Tier II and III markets will drive India’s EV revolution, far surpassing Tier I in the coming years. Our presence in Kochi, Goa, and Vijayawada already shows promising results. 

Also Read

Yulu's FY23 loss widens on battery charging-related costs

YS: With the battery swapping ecosystem developing in India, as an OEM, what are your thoughts on it?

SR: Battery swapping can work for OEMs in the B2B space, especially with fixed routes and predictable usage cycles. In this model, you only own the vehicle, while the battery is swapped out as needed. 

However, in the B2C segment, battery swapping doesn’t make sense due to the personal nature of vehicle ownership, and swapping batteries raises concerns about safety and reliability.

But for an OEM like us, the B2B model isn’t viable at scale. Operating swap stations is expensive and doesn’t align with our core focus of manufacturing vehicles. It’s similar to supplying the vehicle and the fuel, which isn’t sustainable for us.

That said, we do have a portable 10 kg battery pack that can easily be removed and docked, offering a clean, hassle-free solution. We may explore B2B partnerships for this in the future, particularly for gig workers, but B2C remains our primary focus. 

Any B2B involvement would be limited to supplying existing components—there’s no dedicated B2B strategy, as our strength lies in vehicle manufacturing and not service.

YS: Simple Energy’s losses widened in FY24, and you are doubling down on expansion too. How are you looking to balance rising costs and managing expenses in the company?

SR: There are two approaches: heavy investment to drive market share growth, or sticking to a more traditional model—managing costs carefully while focusing on sustainable sales expansion. 

Every major company like Flipkart, Amazon, and Apple had to make early investments to build their foundations. We’re at that stage—planting the seed now to reap long-term benefits.

This is a 10-year journey for any OEM, and we’re in our seventh year. Over the next one to two years, our focus will shift to becoming PAT (profit after tax) positive, not just EBITDA positive. We’ve already made significant investments, and now it’s time to focus on sustainable profitability. Our priority for the next 18 months is expansion—doubling down on our network. Expect impressive growth by year-end.

We’re already proud of our progress—achieving 8X growth in one quarter. That’s a major milestone for us and our shareholders, and it’s only boosting our confidence further.

Simple Energy also completed around 1,900 deliveries so far, and we are looking to deliver about 6,000 scooters by March. For FY26, we are looking at north of around 60,000 scooters. 

YS: Recently, Ola Electric announced its Gig line of scooters. Would Simple Energy also look to diversify its product offerings, given the growth of the gig economy?

SR: Our approach is different. We won’t build products specifically for gig workers, but we’ll offer affordable options in the B2C space maintaining a strong focus on quality. While the immediate need may be ruggedness, we prioritise durability and long-term reliability without compromising on the core quality that our customers expect.

We won’t enter markets that don’t align with our strengths, especially when others are catering to those segments. Instead, we’ll drive innovation in the EV space, pushing the industry forward and leading the charge.

India needs innovation in the automobile sector, and Simple Energy is ready to take the lead. We’ve made significant strides in 2020 and 2023, and this year, we’ll raise the bar again.