Simple Energy Raises ₹250 Cr in Series B Funding for EV Expansion

Update | June 1, 2026

Electric vehicle manufacturer Simple Energy has successfully closed its Series B funding round, securing ₹250 crore (approximately $26.3 million) through a combination of debt and equity. The round was spearheaded by the family office of Dr. Arokiaswamy Velumani, with participation from the startup’s founder and CEO, Suhas Rajkumar, and co-founder and CFO, Ankit Gupta.

Key contributors on the debt financing side included HDFC Bank and Capitar Ventures, alongside other Non-Banking Financial Companies (NBFCs), collectively providing ₹123 crore of the total funding. Simple Energy intends to allocate the raised capital primarily towards scaling its manufacturing capacity and expanding production. The remaining funds will be directed towards sales, marketing, and research and development initiatives, aimed at strengthening its product roadmap and enhancing customer experience.

The company also plans to extend its market presence to new cities, including Ranchi, Bhubaneswar, and Cuttack, in the coming months. Currently, Simple Energy possesses a monthly production capacity of 3,000 units.

“We are witnessing clear market demand, with revenues rising 4X from ₹40 Cr in FY25 to ₹170 Cr in FY26. The funding amounts will be mainly directed towards capacity expansion, targeting monthly sales of 10,000 scooters by March 2027, alongside continued investments in R&D and marketing,” stated Rajkumar. He added that this funding will support the startup’s transition into a full-stack EV Original Equipment Manufacturer (OEM), bolstering its long-term growth and preparedness for public markets.

Simple Energy currently sells approximately 1,500 units monthly and operates through over 71 outlets across 38 cities, including Bengaluru, Delhi, Patna, and Chennai.

Original Report | May 15, 2026

In an earlier development, IPO-bound electric two-wheeler maker Simple Energy was raising ₹126.7 crore (around $13.2 million) in a funding round led by its existing backer, Thyrocare founder Arokiaswamy Velumani. The round was also expected to see participation from a group of angel investors. According to Simple Energy’s filings with the Ministry of Corporate Affairs (MCA), the Bengaluru-based startup’s shareholders had passed a resolution to issue 2.11 Lakh Series X CCPS at ₹6,000 each. Cofounders Suhas Rajkumar and Ankit Gupta were also set to invest ₹13.5 crore each in this round.

The capital was intended for Simple Energy’s growth and business expansion plans. This funding appeared to be part of an ongoing round. Including this previous funding, Simple Energy’s total funding had surpassed $84 million, including a $10 million bridge round raised the previous year. Its investor base includes Haran Family Office, Apar Industries-backed Desai Family Office, and Vasavi Family Office.

The company has been preparing for its IPO, with cofounder Rajkumar previously indicating plans for a public listing. Simple Energy was reportedly aiming to raise approximately $350 million (about ₹3,000 crore) through its IPO by Q2 or Q3 of FY27 to enhance R&D efforts and expand its offline retail footprint to 500 stores.

Founded in 2019, Simple Energy offers three electric scooter models: Simple One, Simple OneS, and Simple Ultra. The startup has expanded its retail network to approximately 70 outlets across Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Kerala, Maharashtra, Rajasthan, Delhi, and Uttar Pradesh.

The company faced initial delivery delays, with its rollout pushed back by over a year due to regulatory hurdles and fundraising challenges. Sales remained subdued until late 2024 before showing improvement in the following year.

Market Dynamics and Financial Performance

According to Vahan data, Simple Energy had sold around 4,806 electric scooters by April 2026, with 1,244 units sold in April 2026 alone. The startup achieved its highest monthly sales in March 2026 with 1,775 units, though sales softened in April amid a broader slowdown in the electric two-wheeler (E2W) segment.

Industry-wide, E2W registrations saw a 20% month-on-month decrease in April 2026, reaching 1.4 lakh units from 1.92 lakh units in March. Despite this sequential decline, registrations were still over 50% higher compared to April 2025. Simple Energy competes in India’s rapidly growing E2W market with companies such as Ather Energy, Ola Electric, River Mobility, and Ultraviolette Automotive.

The Indian EV market is experiencing intensifying competition, with both startups and established automakers focusing on localization, niche segments, and strategic go-to-market approaches. The market is projected to reach $132 billion by 2030. Government initiatives, including Prime Minister Narendra Modi’s call to reduce fossil fuel dependence by adopting EVs, are further supporting market momentum.

In terms of financial performance, Simple Energy’s operating revenue surged over sixfold to ₹40.7 crore in FY25 from ₹6.6 crore in FY24. Total income increased nearly 4.6 times to ₹44.3 crore during the same period. However, the startup’s consolidated net loss widened by 32.6% to ₹83 crore, with expenses rising to ₹129.67 crore in FY25. The company has yet to disclose its FY26 financials, though it had previously targeted 1,000% year-on-year growth in revenue and vehicle sales for FY26.