“Chargeup is essentially focusing on building a tech and data-driven platform that is focused on the driver Chargeup is essentially focusing on building a tech and data-driven platform that is focused on the driver” Varun Goenka, CEO and Co-founder, Chargeup told ETEnergyworld in an exclusive interview. Edited excerpts…
What is the basic business model of Chargeup?
Chargeup is a driver-first company. We started with building a network of battery swapping stations around Delhi NCR for e-rickshaws, for the drivers of three-wheelers and two-wheelers electric vehicles. We were able to increase their income. We are also a fintech platform for those who already have an EV and those who aspire to buy an EV. Any issue with the battery takes around 8-10 days to get rectified and during this time, the driver is unable to work.
We have a pay-per-use policy. We help drivers increase their range as EVs are usually confined to a 10-15 kilometer radius. We introduced plug-and-play advanced lithium batteries for vehicles that they can swap at any Chargeup station or charger. Then we went a step ahead and tied-up with the top OEMS and financers.
How have things panned out since 2019 when the company was founded?
We spent the first year and a half doing market research and developing our product. We started scaling up after the second wave. Today, we operate around 275 stations across Delhi, Gurgaon, Noida, Ghaziabad, Mathura, Jaipur, and Lucknow. We have 30,000 drivers on our platforms and we are doing 1.5 lakh swaps per month, or 60 lakh kilometers per month. We are a 100-member team now. We start by first setting up a company-owned and company-operated (COCO) station. Then, we set up a dealer-owned and dealer-operated (DODO) station across that area.
We don’t buy the assets, i.e, the battery, instead we lease them from a third-party financing company. And drivers work on subscription plans: weekly or monthly. For drivers who want to go more than 100-130 km a day, we have battery swapping and for drivers who only want to do 50-60 km a day, we have battery-as-a-service. The biggest problem when someone buys an EV is the cost of the battery. So, the drivers buy only the vehicle and we offer them a battery as a service. That way they don’t have to worry about maintenance or downtime of the batteries. For this, we tied up with vehicle manufacturers and NBFCs.
What are your growth objectives for the next few years?
While there was substantial growth last year, it was also hindered by many safety issues. The government proactively came up with the battery standard norms but that also slowed down the growth. Going ahead, the government is planning to discontinue the FAME subsidy in the coming year. They are also working on a battery-swapping policy announced in the budget. Chargeup is essentially focusing on building a tech and data-driven platform that is focused on the driver. We are optimizing financing, next will be insurance.
Where do you stand in terms of current and future funding requirements?
There is a lot of interest in this sector, not only from venture capitalists but also from climate tech funds, globally. We will need funding to consistently expand the network. We have our plans and roadmap. Parallelly, the way we are shaping and building the business, we look to also get positive unit economics in terms of operating cash flows soon so we aren’t only dependent on funding. We are open to anything that brings value to our company and drivers.
