Electric two-wheeler maker Simple Energy has raised Rs 250 crore in a fresh funding round comprising a mix of equity and debt, as the company accelerates capacity expansion and prepares for a public market debut targeted for the second half of FY28.
The round was led by the family office of Arokiaswamy Velumani, founder of Arokiaswamy Velumani, while the startup’s founders also participated in the equity infusion. Debt financing of Rs 123 crore came from lenders including HDFC Bank, Capitar Ventures and other non-banking financial institutions.
The latest capital raise comes at a time when competition in India’s electric two-wheeler segment is intensifying, with established manufacturers and venture-backed startups racing to expand production and strengthen distribution. For Simple Energy, the funding is expected to support manufacturing scale-up, network expansion and new product development as it seeks a larger share of the market.
Expansion Plans
Founded in 2019 by Suhas Rajkumar and Shreshth Mishra, the Bengaluru-based company designs and manufactures electric two-wheelers, with its flagship scooter positioned in the premium segment. The vehicle offers a claimed range of up to 248 kilometres on a single charge and a top speed of 105 kmph.
The startup plans to use the fresh capital to significantly increase production capacity over the next few months. Manufacturing output is expected to rise from around 3,000 scooters per month currently to 10,000 units by January and further to 15,000 units by March next year.
While capacity expansion remains a key priority, the company is also looking to strengthen its retail footprint. Simple Energy currently operates through nearly 80 stores across the country and aims to increase that number to between 200 and 250 outlets by March next year. Most of its sales currently originate from southern India, making geographical diversification a critical growth objective.
Revenue Growth
The fundraising follows a period of rapid revenue expansion for the company. Simple Energy reported operating revenue of approximately Rs 150–160 crore in FY26, compared with around Rs 40 crore in the previous fiscal year. The nearly fourfold jump reflects increasing consumer adoption and wider market penetration, although the company remains relatively small compared with larger listed EV manufacturers.
The latest round also extends a funding journey that has gathered pace over the past few years. In July 2024, the startup secured $20 million in a Series A round. That followed a bridge funding round exceeding $20 million in February 2023 and a $21 million pre-Series A round in November 2021 led by investors Manish Bharti and Raghunath Subram.
Industry observers note that access to both equity and debt capital has become increasingly important for EV manufacturers, particularly those investing heavily in production infrastructure, research and development, and distribution networks. Unlike software-led startups, vehicle manufacturers require significant upfront capital to scale operations and improve unit economics.
IPO Roadmap
The company has also outlined an ambitious public listing strategy. Simple Energy is targeting an initial public offering in the second half of FY28 and expects to raise around Rs 3,000 crore through the issue.
According to the company, the proposed IPO proceeds would be directed towards market expansion, research and development initiatives, and the establishment of a new manufacturing facility. The planned fundraise could provide the company with additional resources to compete in a market where scale, supply chain efficiency and brand visibility are becoming increasingly important.
In a statement, the company said the fresh capital would help strengthen its manufacturing capabilities, expand its retail presence and support future product development efforts.
The latest funding round signals investor confidence in the company’s growth plans at a time when India’s electric mobility sector continues to attract capital despite broader funding caution across the startup ecosystem. With production expansion underway and IPO preparations beginning to take shape, Simple Energy is positioning itself for a larger role in the country’s fast-growing electric two-wheeler market over the next two years.
