How did Battery Smart's net loss double to Rs 140 crore in FY24?
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Synopsis
In a shocking financial reveal, Battery Smart's net loss has surged to Rs 140 crore in FY24, more than doubling from last year. Despite a significant increase in revenue, escalating expenses raise concerns about the startup's sustainability. Explore the company's journey and the challenges it faces in the growing EV market.
Key Takeaways
- Battery Smart's net loss reached Rs 140 crore in FY24.
- Operating revenue increased by 193 percent to Rs 164 crore.
- Total expenses doubled to Rs 327 crore.
- Focus on two- and three-wheelers is a strategic advantage.
- Financial backing from Tiger Global and Blume Ventures.
New Delhi, May 5 (NationPress) The Gurugram-based electric vehicle startup Battery Smart has revealed a significant escalation in its net loss, reaching Rs 140 crore in FY24, more than doubling the Rs 61 crore loss from the previous fiscal year.
Despite witnessing a remarkable threefold surge in operating revenue, soaring expenses have heavily impacted the company's financial performance.
Battery Smart’s operating revenue jumped by 193 percent to Rs 164 crore in FY24, compared to Rs 56 crore in FY23, predominantly supported by its primary business model—battery-as-a-service for electric vehicle manufacturers.
Combining Rs 23 crore from interest on financial assets, the total income for the year reached Rs 187 crore, as outlined in the company’s financials reported by Entrackr.
However, the total expenses skyrocketed to Rs 327 crore, up from Rs 125 crore the year prior.
A significant contributor to this increase was a nearly 3.8 times rise in depreciation charges amounting to Rs 85 crore and a 3.75 times increase in finance costs to Rs 45 crore, according to the data.
Moreover, employee benefit expenses surged to Rs 41 crore, whereas advertising expenditures saw a drastic 60 percent decline to Rs 8 crore.
The mounting losses signify ongoing hurdles in achieving cost efficiency. The company's Return on Capital Employed (ROCE) was reported at -18.34 percent, and its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin was -5.35 percent.
For every Rs 1 of operating revenue, the firm incurred Rs 1.99 in expenses, revealing pressure on profit margins despite the increasing demand.
As of March 2024, Battery Smart declared current assets valued at Rs 328 crore, including Rs 107 crore in cash and bank balances, providing some financial cushion.
Supported by investors such as Tiger Global and Blume Ventures, Battery Smart has successfully raised around $192 million to date.
The co-founders, Pulkit Khurana and Siddhart Sikka, collectively own 28.5 percent equity in the company.
Industry reports highlight that its focus on two- and three-wheelers offers a competitive advantage, especially in the three-wheeler sector where battery swapping is proving more effective than conventional charging methods.
Nevertheless, the company faces challenges from major vehicle manufacturers that may favor proprietary batteries or opt to develop their own networks.
Point of View
I view Battery Smart's escalating losses as a significant marker of the challenges facing the EV sector. While innovation and growth in operating revenue are commendable, the surge in expenses highlights a critical need for improved cost management. The future of this startup will depend on its ability to adapt and navigate competitive pressures in the evolving electric vehicle landscape.
NationPress
26/07/2025
Frequently Asked Questions
What was Battery Smart's net loss in FY24?
Battery Smart reported a net loss of Rs 140 crore in FY24, more than doubling from Rs 61 crore in the previous year.
How much did Battery Smart's revenue grow?
The company's operating revenue grew by 193 percent to Rs 164 crore in FY24.
What were the primary contributors to the increased expenses?
The surge in expenses was largely due to a significant rise in depreciation charges and finance costs.
What percentage of equity do the co-founders hold?
Co-founders Pulkit Khurana and Siddhart Sikka collectively hold 28.5 percent equity in Battery Smart.
What advantages does Battery Smart have in the EV market?
Battery Smart focuses on two- and three-wheelers, particularly in battery swapping, which provides an edge over traditional charging methods.
