Arc Electric turns profitable, revenue doubles in FY25: CEO Abhinav Kalia
B2B employee commute startup Arc Electric turned profitable as a result of its micro-cluster model, asset-light approach, and strong fleet utilisation, its co-founder said.
Employee transportation provider Arc Electric turned profitable in FY25, according to its CEO and co-founder Abhinav Kalia. He credited the startup's asset-light operations, strong fleet utilisation, and a micro-cluster model for the turnaround.
Micro-clusters are small localised hubs, usually situated within 10 kilometres of the customer or service area where vehicles are stationed, charged, and dispatched. This has helped the company cash in on the increased asset utilisation of its vehicles.
Arc Electric follows a hybrid model for its all-electric fleet, with some cars owned in partnership with other fleet operators and the remaining owned by the startup.
“Whenever we come with a vehicle on the road, we have a revenue target. It is not something which is lying in our garage or somewhere in our hub idle for one or three months to find a business for it,” Kalia told YourStory.
While the co-founder did not specify the company's clientele, he added that they provide transport services for employees of a “Fortune 500 company” as well as to global capability centres.
Arc Electric's fleet strength touched 2,100 vehicles on its platform last month and it is gearing up to deploy 900 more vehicles to reach 3,000 vehicles over the next 12 months across Tier II cities.
The Delhi-based firm primarily uses Tata EVs in its fleet but has more recently introduced BYD, MG, and Citroen cars for specific use cases such as leadership travel and airport drops for employees of its clients.
Arc Electric has also recorded a 100% year-on-year increase in its FY25 revenue but the company did not disclose the exact amount as the earnings are currently being audited.
Edited by Kanishk Singh