Battery Smart, a Gurugram-based battery swapping operator, has raised US$29 million in its series B funding round.

The round was led by New York-based private equity firm Rising Tide Energy, with participation from responsAbility, Ecosystem Integrity Fund, and LeapFrog Investments.

The company plans to use the funds to expand into new cities and enhance its presence in existing markets.

Battery Smart operates over 1,518 swapping stations across 321 locations in Delhi, serving electric two- and three-wheelers through its lithium-ion battery swapping network.

Founded by Pulkit Khurana and Siddharth Sikka, the company has facilitated over 74.9 million battery swaps and onboarded more than 68,000 electric vehicle drivers.

The company holds a 36% market share in the battery swapping sector and competes with VoltUp, SUN Mobility, and Mooving.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Battery swapping’s renaissance after repeated historical failures

Battery swapping is experiencing a revival after multiple previous market failures that followed a similar pattern of initial enthusiasm followed by commercial disappointment.

General Electric’s GeVeCo battery service (1912-1924) offered EV owners swappable batteries that reduced vehicle costs by 33%, but ultimately failed due to declining demand and standardization issues1.

This cycle repeated with Better Place (2007-2013), which spent $600 million building a swap network before bankruptcy, and Tesla’s 2013-2015 Model S swapping experiment that was abandoned due to customer disinterest1.

Today’s market differs fundamentally from previous attempts through its focus on commercial fleets rather than passenger cars, particularly targeting last-mile delivery vehicles and three-wheelers where economics are more favorable.

The projected growth from $1.46 billion in 2025 to $22.72 billion by 2035 (31.5% CAGR) suggests investors now see battery swapping as a viable solution specifically for commercial mobility segments2.

Battery Smart’s 74.9 million completed swaps demonstrate real market traction in commercial applications, unlike previous attempts that struggled to achieve meaningful adoption levels.

2️⃣ India emerging as a key battleground for battery swapping innovation