Exponent Energy has forayed into EV financing category with the launch of a subsidiary ‘Exponent One’ to offer financing solutions for commercial EV operators
VC firm AdvantEdge has infused $2 Mn (around ₹18.2 Cr) in Exponent One in a pre-seed funding round to expand its presence across key commercial EV hubs
Exponent Energy teamed up with former evfin CEO Sandeep Divakaran to cofound Exponent One, who will serve as the new subsidiary’s CEO
EV rapid charging startup Exponent Energy has forayed into EV financing category with the launch of a subsidiary ‘Exponent One’ to offer financing solutions for commercial EV operators.
VC firm AdvantEdge has infused $2 Mn (around ₹18.2 Cr) in Exponent One in a pre-seed funding round to expand its presence across key commercial EV hubs.
As per Exponent Energy cofounder and CEO Arun Vinayak, the financial arm is being launched to address two key issues – limited EV financing options and high defaults.
Exponent One will use real-time vehicle and charging data to enable adaptive underwriting and earnings-linked financing tailored for driver-owners and small fleet operators. Based on the data obtained, its offerings will combine flexible repayments, integrated protection, and assured buybacks to enhance asset reliability, reduce lender risk, and improve long-term financial stability for operators.
Exponent Energy teamed up with former evfin CEO Sandeep Divakaran to cofound Exponent One. Divakaran will serve as the new subsidiary’s CEO.
“Our vision is to enable sustainable micro-entrepreneurship in electric mobility by building financing that adapts to real-world earnings and not monthly averages, manages asset risk, provides buffers and gives drivers the confidence to switch and grow with EVs,” he said.
Exponent One plans to partner with traditional financiers to deliver EV financing for commercial EV operators across the range of three-wheelers, four-wheelers, light commercial vehicles (LCVs), buses and trucks.
Divakaran told Inc42 that Exponent One will offer financing solutions to customers who purchase Exponent Energy’s batteries as well as its existing customers.
Founded in 2020 by former Ather Energy executives Vinayak and Sanjay Byalal, Exponent Energy has built an end-to-end tech stack that helps original equipment manufacturers (OEMs) across segments to reduce charging time and enhance the life of EV batteries.
Exponent Energy’s efficient 15-minute rapid charging is engrained in its offerings, namely — ‘e^packs’, ‘e^pumps’, and ‘e^plugs’.
So far, the startup has raised more than $44 Mn and counts Eight Roads Ventures, TDK Ventures, Lightspeed, YourNest VC, 3one4 Capital and AdvantEdge VC, among others as its investors.
To note, the energy tech startup partnered with bus manufacturer Veera Vahana to launch its 15-minute rapid charging technology for electric buses in 2024, which is equipped with Exponent’s 320 kWh battery pack. The Veera Mahasamrat EV is expected to reduce the operating expenses of the fleet owners by 30% compared to an ICE bus.
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