Urja Mobility Bags INR 100 Cr In A Mix Of Debt & Equity To Lease EV Batteries

Electric vehicle (EV) battery leasing startup Urja Mobility has raised INR 100 Cr (about $12 Mn) in its pre-Series A funding round in a mix of debt and equity. The round was led by existing investor Mufin Green Finance Limited and Hindon Mercantile Limited (Mufin Green’s parent). 

Urja Mobility founder and CEO Pankaj Chopra told Inc42 that the startup has diluted 25% of its overall equity so far.

The newly infused capital will be used to scale operations and expand its pay-per-use battery leasing model, which charges customers on a per-kilometre basis for leased batteries. The funding will also support Urja Mobility’s plans to expand its retail footprint by opening new retail outlets primarily in Tier II & III cities. 

In a statement, the startup said that a chunk of the capital will also be utilised to expand its product portfolio and for supply chain management.

Founded in 2023 by Chopra, Urja Mobility is a New Delhi-based EV battery solution startup that leases batteries to EV consumers and fleet operators on a pay-per-use model. Last year, the startup raised an undisclosed amount from Mufin Green Finance. 

It primarily caters to commercial EVs and claims to sell 45 MWh of energy per day.  Going forward, the startup has set its eyes on “selling” 300 Megawatt Hour (MWh) of energy per day. 

“This funding round marks a major milestone for us. Our goal is to revolutionise energy consumption in the emobility sector while expanding our presence across India. The pay-per-use model we’ve introduced makes emobility more accessible, and this funding will help us strengthen our retail presence and provide solutions to a wider audience,” Chopra added. 

Commenting on the fundraise, Mufin Green Finance’s founder and director Kapil Garg said, “We are thrilled to support Urja Mobility’s journey. Their unique solutions, combined with their commitment to sustainability, align perfectly with our focus on supporting India’s transition to clean energy”.

In the statement, the startup also said that it plans to raise an additional INR 250 Cr in the first quarter (Q1) of 2025 to scale up its retail network. Chopra told Inc42 that the startup will kick off the round in January 2025 and will be looking to close it by April 2025. 

“This next round of funding will allow the company to continue its rapid expansion and further scale its innovative offerings,” added Urja Mobility.

The startup competes against the likes of Battery Smart, Sun Mobility, VoltUp in the EV battery solution segment. 

This comes at a time when the EV segment is witnessing high interest from investors. Within this, the EV battery market is also poised for substantial growth, driven primarily by rising demand for EVs and regulatory tailwinds.

Last month, Clean Electric secured $6 Mn in its Series A funding round co-led by Info Edge Ventures, pi Ventures, and existing investor Kalaari Capital. 

As per a report, the Indian EV battery market is poised to become a $27.7 Bn opportunity by 2028 from $16.77 Bn in 2023. 

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