The recent round was led by the family office of Arokiaswamy Velumani, founder of Thyrocare Technologies, along with participation from Simple Energy’s founders. Debt financing came from HDFC Bank, Capitar Ventures and other NBFCs, contributing Rs 123 crore.
“We want to scale manufacturing from 3,000 scooters a month to 10,000 by January and 15,000 by March next year,” Suhas Rajkumar, founder of Simple Energy, told ET. “A large part of the working capital is going towards scaling production capacity, expanding our distribution network and product development.”
The company currently retails around 2,000 scooters every month and plans to expand its network from nearly 80 stores today to about 200-250 outlets by next March.
Simple Energy is also preparing for an IPO in the second half of FY28, Rajkumar said, adding that the company is currently undertaking internal preparations for the listing. As per reports, the company aims to raise approximately Rs 3,000 crore or $350 million to fund market expansion, research and development, and a new manufacturing facility.
“We strongly intend to go public soon. By the end of this year, we should be able to provide more clarity on the filing timelines and issue size,” he said.
The company reported operating revenue of around Rs 150-160 crore in FY26, up from about Rs 40 crore in the previous year, marking a nearly fourfold jump.
New product launch
Rajkumar said the company is now preparing to enter the mass-market scooter segment with more affordable models, moving beyond its premium positioning.
“A lot of customers want to buy the Simple One but hesitate because of the pricing. We now want to bring more consumers into the Simple family through affordable products,” he said. The company plans to launch more affordable variants in the next few months.
The startup currently derives most of its sales from southern states, which continue to lead EV adoption in India. According to Rajkumar, the broader electric two-wheeler market continues to grow 35-40% annually, driven by improving distribution, service infrastructure and customer awareness.
PLI push
On the government’s production-linked incentive (PLI) scheme for the auto sector, Rajkumar said startups and mid-sized EV companies should also be included.
“Excluding smaller EV companies completely does not make sense. There can be qualifying criteria around sales or distribution scale, but the benefits should extend across the ecosystem,” he said.
He added that inclusion in the scheme would help companies manage margin pressures and invest further in research, infrastructure and expansion.
Rajkumar also said distribution continues to remain a key differentiator between startups and legacy auto companies.
“Today, startups do not yet have 2,000 touchpoints like legacy players. Over the next five years, that gap will reduce. Once distribution parity comes in, the competition will shift from distribution strength to product quality,” he said.
Simple Energy currently manufactures scooters at its Hosur facility and employs over 400 people in research and development functions.
