Neuron Energy Secures INR 200 Mn Funding Led by Equanimity Investments and Rajiv Dadlani Group

EV smart battery manufacturer Neuron Energy has successfully raised INR 200 million in their Pre-Series A Round. The investment was led by Equanimity Investments and the Rajiv Dadlani Group and also saw participation from Chona Family Office (Havmor Group) and Kayenne Ventures, alongwith reputed Family Offices and HNI investors.

This funding round marks a major milestone for the promising lithium-ion EV smart battery manufacturer, Neuron Energy, which has been rapidly growing since its inception in 2018. The Company plans to use the funds primarily to support key initiatives, such as obtaining essential ICAT Certifications and investing in mould development, along with strengthening the workforce by expanding the R&D team and hiring CXO’s and senior management. Furthermore, the funding will fuel Neuron’s expansion of Li-Ion smart batteries for EV 2W’s and 3W’s while aiding in the brand’s venture into drone batteries.

The Company has a low capex and low opex business model, thereby enjoying high operating leverage, also have been growing profitably YoY and is on track to cross Rs. 100 Crores in Net Sales Revenue this year and is confident to achieve Net Sales of over Rs. 500 Crores, with robust profitability, over the next few years, highlighting the Company's strong desire, to capture a larger market share and its firm commitment, to achieving significant sales growth in the dynamic and rapidly growing EV industry. With a focus on producing high-quality smart batteries and offering the highest service standards, Neuron has established itself as a trusted and reliable brand among OEMs.

The Company provides lithium-ion and lead-acid technology smart batteries for E-Bike, E-Rickshaws, and Golf Carts. Neuron Energy has a large export and domestic network, for sales in E-Bike smart batteries. Their branded products are sold through their extensive pan India network, of multiple Depots and Distributors. Neuron Energy has also increased its export footprint, to the Middle East, Europe, and South-East Asia

Commenting on the Fund raise, Pratik Kamdar, CEO & Co-Founder, Neuron Energy said, "This fundraise marks a crucial milestone in our company's growth journey. Our esteemed investors bring extensive expertise in scaling businesses and will play a pivotal role in guiding our expansion. The funds raised will not only enhance our manufacturing capabilities but also bolster our workforce across all levels. Neuron Energy is committed to serving a broader customer base with top-of-the-line, rigorously tested lithium-Ion smart battery packs, and this funding will undoubtedly propel us towards achieving that goal."

Rajesh Sehgal, Managing Partner of Equanimity Investments commented “The EV landscape in India is evolving and is expected to gain pace in the coming years, as India moves towards a well-planned holistic trajectory by making significant progress towards an electric future. This also makes battery manufacturing a huge opportunity, as it is at the heart of the energy ecosystem transition. Our conviction in the founders' capabilities and the inherent robustness of the company, makes them well-positioned to contribute towards shaping the future of EVs in India.”

Rajiv Dadlani, from the Family Office of the Rajiv Dadlani Group, said "As long-term growth investors, we recognise the enormous opportunity of the EV industry. Neuron Energy demonstrates remarkable potential to become the market leader with their exceptional efficiency in delivering top-quality products. The Company and its Founders are highly committed to delivering rigorously tested and safe-to-use Li-Ion smart batteries, a key factor that has sparked significant investor interest. We are confident that with our guidance, support and long-term approach, Neuron Energy will continue to thrive and set new standards in the industry."

In addition to the funding, Neuron Energy actively seeks to establish a strategic partnership, with a leading EV two-wheeler manufacturer, to establish a dedicated state of the art facility. Furthermore, the company has strengthened its expertise by appointing Mr. Chandrasekhar for Strategy and Growth and Mr. Subramanian for Technology Development guidance to its advisory board, further reinforcing its capabilities and positioning in the market. Chandrasekhar Rajagopalan is a seasoned professional who was earlier associated with Essel Group as a President and President of Commercial & CFO of Reliance’s Petrochemical division. On the other hand, Ramki Subramanian is an experienced Senior Management professional who is the Managing Director and Global Director for Mobility with DowAksa USA LLC.

About Neuron Energy:

Neuron Energy Pvt. Ltd. was incorporated in the year 2018, having headquarters in Mumbai, Maharashtra. Neuron Energy intends to contribute significantly to the electric mobility landscape. Neuron Energy Pvt. Ltd. provides lead-acid and lithium-ion technology smart batteries for E-Bike, E-Rickshaws, and Golf Carts. Neuron Energy has a large export and domestic network, for sales in E-Bike batteries. Our Promoters, Pratik Kamdar and Raj Shah have spearheaded our growth story. Neuron Energy Pvt. Ltd. has grown from having a presence only in Mumbai, to having multiple Depots & Distributors across India. Neuron Energy has increased its export footprint, to the Middle East, Europe, and South-East Asia.

Bootstrapped EV Batteries Startup Neuron Energy Investing INR 50 Cr in Lithium-Ion Battery Pack Segment

The investment is planned owing to an increase in the demand for Li-Ion Batteries

Large OEM orders will account for 40 percent of the investment

Neuron Energy Private Limited, a manufacturer of lithium-ion for electric 2W and 3W in India, plans to invest INR 50 Crore in the Li-Ion battery pack segment. The investment will be split between 35 crores of working capital financing and 15 crores of equity from the promoters and strategic partners. This move by the company is to cater to the increasing demand in their order book. The increase in demand for Li-Ion batteries is a testament to the fact that there is a substantial increase in demand for electric mobility owing to the rising eco-consciousness among consumers. Neuron also has plans for backward integration into stocking raw materials and handling production along with a contract manufacturer in the near future.

Besides increasing capacity, 40 per cent of the investment will be used to fulfil orders from large OEMs. As part of their growth strategy, the company intends to focus on the battery pack business. The investment is also expected to increase cash flow considering Neuron has always been a profitable company.

Commenting on this funding, Pratik Kamdar, Co-Founder of Neuron Energy Private Limited says, “At Neuron Energy, we are committed to facilitating the transition to a sustainable and eco-friendly future for India's automobile sector. Towards our mission of transforming the EV industry, we are planning to expand our production capacity and enhance research and development. Also, in order to further the EV 2W and 3W segment in the country, we have always been focused on producing high-quality, user-friendly batteries. This investment will help us equalise the demand-supply ratio for batteries. We are confident to fulfil the increase in demand in our order book through this financing at the designated time.”

Among the advantages of Neuron's Li-ion battery product line are the microprocessor-based BMS, the 4 temperature sensors, the appropriate cell spacing for thermal management, and the Neuron App for remote assistance.

The Depot network is expected to remain the same for the next six months in Mumbai, Delhi, Chennai, and Kolkata. In the near future, Neuron may venture into battery research for deep technology as a result of the increase in its R&D team. As part of its expansion plans, Neuron has planned to construct a mega-plant by 2025 that will serve the EV2W and EV3W segments.

About Neuron:

Neuron Energy was incorporated in the year 2018, having headquarters in Mumbai, Maharashtra. Neuron Energy intends to contribute significantly to the electric mobility landscape. Neuron provides lead-acid and lithium-ion technology batteries for E-Bike, E-Rickshaws, and Golf Carts. Neuron Energy has a large export and domestic network for sales in E-Bike batteries. Our Promoters, Mr. Pratik Kamdar, and Mr. Raj Shah have spearheaded our growth story. Neuron Energy has grown from having a presence only in Mumbai to having multiple Depots & Distributors across India. Neuron Energy has increased its export footprint to the Middle East, Europe, and South-East Asia.