Simple Energy Targets FY28 IPO After Raising ₹250 Crore

Bengaluru-based electric vehicle (EV) startup Simple Energy has raised ₹250 crore in a fresh funding round as it prepares to expand production, widen its retail network, and move closer to a planned public listing.

The company said its revenue climbed nearly fourfold in FY26 to around ₹150-160 crore, compared to about ₹40 crore in the previous year, reflecting rising demand for electric scooters in India.

The funding round included a mix of debt and equity. It was led by the family office of Arokiaswamy Velumani, while debt financing came from HDFC Bank, Capitar Ventures and other Non-Banking Financial Companies (NBFCs). Simple Energy said a large portion of the capital will go towards scaling manufacturing capacity and expanding distribution across India.

What Is Simple Energy Planning Next?

Founder Suhas Rajkumar said the company wants to increase scooter production from around 3,000 units a month to 10,000 by January and 15,000 by March next year. The EV maker currently sells close to 2,000 scooters every month and plans to expand its retail footprint from around 80 outlets to nearly 250 stores by next March.

The company is also preparing to enter the mass-market scooter category with more affordable models. At present, most of its sales come from southern Indian states, where electric vehicle adoption remains strong. Rajkumar said the broader electric two-wheeler market in India is still growing at nearly 35-40% annually, helped by improving charging infrastructure, better service networks and rising consumer awareness.

IPO Plans And Expansion Strategy

Simple Energy is now targeting an initial public offering (IPO) in the second half of FY28. According to Rajkumar, the company is internally preparing for the listing and expects more clarity on timelines by the end of this year. Reports suggest the company may look to raise nearly ₹3,000 crore through the public issue to support market expansion, R&D and a new manufacturing facility.

The company currently operates its manufacturing facility in Hosur and employs more than 400 people in research and development roles. It also plans to expand into cities such as Ranchi, Bhubaneswar and Cuttack as part of its next growth phase.

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Rajkumar also urged the government to extend production-linked incentive benefits to startups and mid-sized EV companies, saying broader support would help the sector invest more aggressively in technology, infrastructure and scale.

Sources:

The Economic Times

Business Standard