E2W Firm Simple Energy to Invest Rs 45 Crore on Production Facility

Simple Energy, all set to roll out its maiden electric scooter, is planning to invest around Rs 45 crore in setting up a production facility

Bengaluru-based EV start-up Simple Energy, which is all set to roll out its maiden electric scooter in the first half of 2021, is planning to invest around Rs 45 crore in setting up a production facility. According to their founder Suhas Rajkumar, the startup will raise USD 8 million (around Rs 58.50 crore) in Series-A funding by March-April for setting up the plant and product launch. “We are investing Rs 45 crore in setting up the manufacturing facility,” he said.

The plant, which will initially have a capacity to produce 50,000 vehicles in the first year of the commissioning, will come up at near Hosur in Tamil Nadu. Besides launching the flagship Mark 2, the company may add another product in its portfolio during the current year but has not yet decided whether it will be a bike or a better-version of the scooter.

“We are looking to set up our factory around Hosur (an industrial city in the Krishanigiri district of Tamil Nadu) at a capacity of 50,000 units for the first year. The plant set-up will begin from June-July, post the launch. We are keeping a minimal time gap between the launch and the delivery of the product,” Rajkumar told local press.

Rajkumar said the capital requirement initially is around USD 15 million for rapidly expanding the business to 4-5 cities. The company will launch Mark 2 by the first half of this year in three prime locations – Bengaluru, Chennai and Delhi – to begin with and then gradually expand to other cities such as Mumbai, Hyderabad and Kolkata.

Mark 2 will have a range of 230 km and come with a removable battery, and a top speed of 100 kilometres per hour (kph).

After the launch, the deliveries will commence to the customers with pre-launch bookings from October-November onwards, he said adding that in the first year of the launch, the company expects a sales volume of 10,000 units from three cities together.

Rajkumar said the company hopes to launch as many products as possible and will begin with Mark 2. “We will see the market response after the delivery of the first product, gauge its success and then roll out more offerings.” He further said Mark 2 will be priced between Rs 1.10 lakh and Rs 1.20 lakh, and in terms of pricing, it will be almost equal to a BS-VI Activa scooter. “Our aim is to reduce the price gap between a vehicle with an IC Engine and an electric one.”

The firm is also working on setting up its own fast-charging stations, Matrix, at places like metro stations, petrol pumps and cafes and is scouting partners for such charging infrastructure.