Chetan Maini, the founder of Sun Mobility, is seeking to raise an additional $700 million to support the company’s expansion plans over the next three years. The Bengaluru-based company, established seven years ago, has already secured commitments totaling $290 million from Indian Oil Corporation (IOCL).
“In the next three years, debt and equity put together will be raising $1 billion. Equity is already committed to close to $290 million by IOCL,” Maini said in an interview to FE. Maini was the founder of Reva Electric Car Company, one of India’s earliest electric vehicle makers, which was acquired by Mahindra & Mahindra in 2010.
The fresh investments will be utilised to fund Sun Mobility’s international expansion and its entry into larger battery packs, with a focus on servicing electric trucks and buses. So far, the company has primarily serviced electric two-wheelers and three-wheelers.
In 2023, IOCL committed to investing Rs 1,800 crore (about $214 million) in a joint venture company that will be equally owned by IOCL and Sun Mobility. Also, the board of the state-owned company pledged a separate investment of $78.3 million in Sun Mobility, Singapore.
“While we have sufficient capital today, we may extend the current round of funding as there is a lot of interest. We would be raising another $80 million,” Maini added.
Sun Mobility has installed over 600 stations in selected markets where it enables the exchange of fully charged battery packs as replacements for discharged packs. Customers are charged a subscription fee for this service.
It claims to be doing 1.6 million swaps per month in over 20 cities. There are over 25,000 vehicles on its platform. “We are looking at getting 1 million vehicles on our platform in the next 3 years with 10,000 stations,” Maini added.
Sun Mobility’s primary customers are those involved in shared commutes, fleets, and cargo movement, particularly vehicles used for commercial purposes that typically cover higher distances compared to other vehicle categories.
A majority of electric vehicles come with fixed batteries. Sun Mobility does retro fitment of such vehicles allowing the owners to swap battery packs. The service costs Rs 5,000 for two-wheelers and Rs 7,500 for three-wheelers. The company is also planning to expand this technology to cargo four-wheelers, such as Tata Ace-type vehicles.
“By the end of this year, the solutions will be deployed for 3 tonnes to 55 tonnes,” Maini added. In 2017-18, the company joined hands with Ashok Leyland for swapping solutions for its buses.
Sun Mobility’s joint venture with IOCL enables it to leverage IOCL’s network of over 37,000 retail outlets to establish its own outlets. The company plans to replicate this structure internationally by partnering with large energy companies. It has started pilot projects in Africa, South America, and the Philippines.
