Simple Energy raises Rs 250 Cr in equity and debt

Simple Energy, the Bengaluru-based electric two-wheeler manufacturer, has raised Rs 250 crore in a Series B round of funding led by the family office of Arokiaswamy Velumani.

This funding round, which is a combination of debt and equity, also saw the participation of Simple Energy founders, Suhas Rajkumar and Ankit Gupta. The debt component amounting to Rs 123 crore was provided by HDFC Bank, Capitar Ventures and other NBFCs.

According to this EV manufacturer, the majority of the proceeds will be deployed to scale up production, including manufacturing and capacity expansion. Besides, it will also be used for activities such as sales, marketing, and R&D with the goal of strengthening the product roadmap and customer experience.

“The funding reflects strong investor confidence in Simple Energy. This will help us scale production, strengthen our Made-in-India manufacturing stack, and expand access to our long-range, performance-led scooters nationwide," Simple Energy Founder & CEO Suhas Rajkumar, said.

Simple Energy said its monthly sales is around 1,500 EV scooters and is targeting 10,000 units by March 2027. The company has 71 outlets across 38 cities which include locations such as Bengaluru, Delhi, Patna, and Chennai. It plans to expand into cities such as Ranchi, Bhubaneshwar, Cuttack etc.

Founded in 2019, the EV startup claimed its revenue rose 4x from Rs 40 crore in FY25 to Rs 170 crore in FY26. Currently, it has a production capacity of 3,000 units per month and it has invested further in its battery line as it looks to become a full stack EV OEM.

Simple Energy is also looking to expand its team across functions such as sales, production, and marketing. This startup claimed that it is the first Indian OEM to commercially produce heavy rare earth free motors.