Bengaluru-based electric vehicle startup Simple Energy is gearing up for a significant capital infusion of $30 to $40 million. This fresh funding round, expected to be its first with institutional participation, will support the company's expansion plans and the launch of its new long-range scooter models, including the flagship Simple Ultra with a claimed range of 400 kilometers.
Funding for Growth and Expansion
Chief Executive Suhas Rajkumar confirmed to Mint that the company is in talks to secure the capital within this year. The round will likely comprise a mix of equity and debt, with a strong focus on attracting international backers alongside existing investors. To date, Simple Energy has raised $51 million, primarily from family offices and high-net-worth individuals, rather than traditional venture capital funds.
Rajkumar noted that while the company has engaged with domestic private equity and venture capital firms, converting that interest into substantial investments has been challenging. He suggested that institutional investment strategies might not yet align with the company's stage, but expressed openness to such capital as Simple Energy progresses towards a public offering. The startup is preparing for an Initial Public Offering (IPO) in the second or third quarter of the financial year 2027, with an ambition to raise approximately $350 million.
The immediate use of the new funds will be to increase production capacity, establish a second manufacturing plant, and stabilize the supply chain. Rajkumar highlighted that working capital requirements are intense, with about 80% of funding directed towards it, partly due to inventory needs and India's inverted GST structure. The company's current facility in Hosur, Tamil Nadu, has a capacity of around 5,000 scooters.
Launch of Gen 2 Scooters and the Simple Ultra
On Monday, 5th January 2026, Simple Energy unveiled its next-generation lineup. This includes updated Gen 2 versions of its Simple One and Simple OneS scooters, and the introduction of the new Simple Ultra, touted as its longest-range model yet.
The star of the show, the Simple Ultra, is powered by a 6.5 kWh Nickel Manganese Cobalt (NMC) battery pack with passive cooling. The company claims it can achieve a range of 400 km in the standardized Indian Driving Cycle (IDC) test, offers a top speed of 115 kmph, and accelerates from 0 to 40 kmph in 2.77 seconds. Rajkumar clarified that real-world range is typically 20-25% lower than the IDC figure.
The Simple One Gen 2 will be available in two variants: one with a 4.5 kWh battery (236 km IDC range, 6.4 kW peak power) and another with a 5 kWh battery (265 km IDC range, 8.8 kW peak power). The Simple OneS Gen 2 comes with a 3.7 kWh battery, offering a 190 km IDC range and 6.5 kW of peak power.
Market Challenges and Strategic Push
Simple Energy's fundraising and product push come at a time when the Indian electric scooter market is witnessing a shift. Legacy players like Bajaj Auto and TVS Motor are gaining significant market share—reaching a combined 52.1% in 2025—thanks to their extensive dealer networks. Meanwhile, former leader Ola Electric's share has declined due to customer service issues, allowing Ather Energy to overtake it.
For Simple Energy, scaling production remains a key hurdle. The company is currently fulfilling only 50-60% of its demand, with battery cells being the biggest imported component and a critical bottleneck. The company aims to expand its retail footprint from about 80 outlets currently to roughly 150 stores by March.
Retail registrations for the company's earlier Gen 1.5 scooter stood at around 650 units in December 2025, a decrease from about 800 in November and 1,100 in October. The Gen 1.5 model, launched in 2023, is positioned as a premium offering priced between ₹1.4 and ₹1.7 lakh (ex-showroom).
