It’s Thursday, and today we’re looking at VoltUp, an Indian electric mobility company that raised an $8 million seed round. EM Impact Capital led the round, with participation from HDFC Bank, cKers, Grip Invest, and GetVantage.
The Product
Battery technology is improving fast and can now last 2-3 times longer than the vehicle. However, they still account for a substantial portion of the vehicle’s cost, especially in 2 and 3-wheelers. That’s where VoltUp comes in.
At the core of VoltUp’s offering are battery swapping stations for E2W and E3W, providing riders with fully charged batteries in just two minutes. This solution lowers barriers to entry for potential buyers since they don’t have to worry about the high upfront cost of batteries.
Although not disclosed publicly, based on previous news stories and announced partnerships, the number of stations is estimated to be around 1,000. VoltUp plans to expand its network by an additional 1,000 lithium-ion swapping stations across 20 cities, up from 14 cities today. The company plans to invest an additional $85 million in swapping stations over the next two years, expanding into 40 cities.
Another part of VoltUp’s offering is a data solution. The company has developed its own mobile platforms for partners and users. Partners can register drivers, track earnings, and monitor battery usage. Users/customers can locate a nearby station through the app, pay for the swap, and track battery performance. Partners also have access to telematics, which enables them to monitor driving quality, location, accident tracking, and geofencing to protect against fleet and battery theft.
Aside from installing swapping stations, VoltUp also takes care of the maintenance costs. They are responsible for replacing batteries that have reached the end of their lifecycle, fixing charging issues, and addressing any hazardous situations.
The Business Model
VoltUp’s business model is heavily reliant on partnerships: battery production, integration, and distribution all depend on sector-leading partners.
Battery Production: The partnership value chain starts with LIB India — the country’s leading battery manufacturer, which in 2024 supplied VoltUp with 50,000 batteries, with an additional 500,000 set to come in the next three years.
Battery Management: TTo ensure the longevity of those batteries, VoltUp has partnered with global chip manufacturers. While battery manufacturers handle battery chemistry and materials, BMS providers develop the electronics and software that monitor and manage battery performance.
Station Distribution: Two oil companies, HPCL and BPCL, along with telecom provider BSNL, are among VoltUp’s distribution partners, helping to scale the swapping stations. For example, a partnership with BPCL is helping to install 650 sites across 50 cities.
Building on this partnership foundation, VoltUp operates under both the Battery-as-a-Service (BaaS) and Mobility-as-a-Service (MaaS) models.
BaaS is available to EV owners looking for a more efficient charging solution while also addressing technology obsolescence. To use VoltUp’s network, customers either need to buy a VoltUp-powered EV or retrofit their existing vehicle for compatibility. Once onboarded, they pay a per-swap fee with no additional subscriptions. While this is positioned as a consumer offering, the model appears particularly attractive to gig workers. This makes sense because if you’re a Zomato delivery driver working an 8-hour shift, it’s unlikely you’ll have time for a recharge. VoltUp claims that its pay-as-you-go model lowers the total cost of ownership (TCO) by up to 76%, eliminating maintenance and fueling costs.
MaaS, on the other hand, is a full-stack solution providing both the vehicle and battery. This model is tailored to customers who need an all-in-one mobility service. Customers choose from available bikes on the platform and pay for their subscriptions accordingly.
A standalone piece of the model are partnership agreements. In my discussions with VoltUp’s team they mentioned that infrastructure partners like HPCL, BSNL, and BPCL contribute locations for swapping stations, with agreements structured around either rental fees or energy consumption. Additionally, VoltUp licenses its technology to third parties who set up infrastructure at their locations and earn a per-swap fee based on their investment.
And while today VoltUp’s model is heavily reliant on those partnerships, the company plans to reduce these dependencies over time. By 2030, VoltUp wants to bring all aspects of the production value chain in-house in India, including battery cell manufacturing, BMS, and telematics.
The Local Angle
Although India isn’t unique in adopting electric two-wheelers (E2W), it stands out for its market size and long-term growth potential:
Government Incentives: Programs like FAME-II and the Electric Mobility Promotion Scheme (EMPS) are fueling growth, aiming for 80% E2W market share by 2030. Under FAME II, the government subsidizes $115 per kWh of battery, capped at 15% of an E2W’s ex-factory price. EMPS, launched in 2024, offers $115 savings on a new E2W.
The Changing Consumers Attitude: A BCG survey found that consumer openness to E2Ws has skyrocketed: In 2022, only 1 in 10 were early adopters, but by 2024, that number jumped to 4 in 10. Meanwhile, detractors shrank from 8 in 10 to 2 in 10, with lower total cost of ownership (TCO), easier handling, and comfort being key selling points.
Continued Gig Work Rise: India’s gig worker population is expected to triple from 7.7 million in 2020 to 23.5 million by 2029. Companies like Zomato are doubling their revenue, while new gig players and India’s growing middle class boost demand for workers. This growth makes it unlikely that gig work demand will slow anytime soon.
The Roadblocks
The combined tailwind of changing consumer attitudes, soaring gig work, and government EV push is strong, but we can’t ignore notable risks that VoltUp has to deal with:
The Partnership-Competitors Dynamic: I’m not usually one to obsess over competitors—there’s always competition, no matter the market. But with VoltUp, it’s the mix of partners and competitors that makes me pause. VoltUp’s competitors also rely on partnerships to make their business models work. Take E2W manufacturers, for example. In 2024, there were 220 players, up from 180 in 2023. Sounds good: more players mean more competition, which should reduce supplier leverage. The problem is, 82% of the market is controlled by just four companies. And since vehicle manufacturing is all about scale, this market probably won’t become much less concentrated anytime soon. It’s the same story with station distribution: sure, you can partner with millions of small businesses, but if you want real scale, you need national gas stations, big retail operators, and the like. This concentration of potential partners, combined with competition from larger, well-funded players, is probably the biggest risk for VoltUp in the short to medium term.
Swapping Skepticism: One unnamed E2W exec recently expressed skepticism about swapping stations as a business. From his perspective, swapping is actually more expensive for consumers. Why? Because station operators need to buy extra batteries (so they don’t run out) and build costly infrastructure. His math suggests that per-kilometer costs are nearly double compared to just charging the vehicle. Other experts note that 80% of consumers already charge at home and have enough juice to commute daily. Meaning that the market might be pretty much capped at gig workers.
Unresolved E2W Issues: In the same BCG survey I mentioned earlier, folks who are still hesitant to switch to electric cited poor speed and pickup, durability issues, and a general lack of trust. First off, these are things VoltUp — or any swapping business for that matter —can’t control. Secondly, some of these hurdles could take a while to fix. Advancing battery tech and building a strong brand aren’t exactly overnight projects.
Lowered Government Support: FAME-II was great while it lasted, but it’s being phased out. The new PM E-DRIVE scheme will offer the same $115 incentive as EMPS for a new E2W. For the most popular models, that won’t change much since FAME-II already had a 15% cap. But if you’re eyeing a more advanced model and still watching your budget, you could miss out on $100-200 in extra incentives.
The Takeaway
VoltUp is a fascinating type of business. On one hand, you’ve got these wild tailwinds of demand and market size. On the other, you’ve got strong competitors and partners who, frankly, can call a lot of the shots.
It’s like this constant tug-of-war between “There’s enough room for everyone to win” and “You’re about to get squeezed by every part of the value chain.”
You don’t often see a business where Porter’s Five Forces play out so vividly. That’s what makes this market so compelling to watch and hard to compete in.
