Exponent Energy Expands into Electric Vehicle Financing with Exponent One

With the introduction of its subsidiary 'Exponent One,' the electric vehicle quick-charging startup Exponent Energy has entered the electric vehicle financing area. Now it will provide funding options to commercial EV operators. Venture capital firm AdvantEdge has invested $2 million (about INR 18.2 crore) in Exponent Inc. one of a series of pre-seed investments to increase its footprint in strategic commercial EV nodes. The introduction of the financial arm is being done to tackle two major challenges, according to Arun Vinayak, cofounder and CEO of Exponent Energy: the lack of options for financing electric vehicles and the high rate of defaults.

Business Plans of Exponent One

Customised adaptive underwriting and earnings-linked financing for driver-owners and small fleet operators will be made possible by Exponent. One using real-time data from vehicles and charging stations. In order to improve asset reliability, its products will use the collected data to combine features like guaranteed buybacks, integrated protection, and flexible repayments. In addition to enhancing operators' long-term financial stability, the products will decrease lender risk. Cofounders of Exponent One were Sandeep Divakaran, formerly of evfin, and Exponent Energy.

To head up the new subsidiary, Divakaran will take the helm. The chief executive officer stated that the goal of the organisation is to facilitate long-term micro-entrepreneurship in the electric mobility sector. The company will succeed in its mission if it creates a funding model that changes based on actual profits rather than monthly averages. As a result, it will control asset risk, offer buffers, and encourage drivers to embrace EVs and their growth.

For the benefit of commercial EV operators, Exponent One intends to team up with conventional lenders to provide EV financing for a variety of vehicles, including three-wheelers, four-wheelers, LCVs, buses, and trucks. Customers who buy batteries from Exponent Energy and current customers will both have access to financing options through Exponent One, according to Divakaran's statement to a media source.

Funding and Operations of Exponent Energy

Exponent Energy was founded in 2020 by Vinayak and Sanjay Byalal, two former executives at Ather Energy. The company has developed a comprehensive technology stack that assists original equipment manufacturers (OEMs) in many industries. The technology stack helps in decreasing the amount of time it takes to charge electric vehicle batteries and increasing their lifespan.

The 'e^packs', 'e^pumps', and 'e^plugs' are the energy products offered by Exponent Energy that incorporate its efficient 15-minute quick charging technology. In four different locations, the startup's network of charging stations totals over 162. Eight Roads Ventures, TDK Ventures, Lightspeed, YourNest VC, 3one4 Capital, and AdvantEdge VC are among the many investors in the Bengaluru-based business. The firm has collected a total of $44.4 million so far, including its most recent investment round of INR 220 cr ($26.4 million) in 2023.