Bengaluru-based electric vehicle (EV) startup Simple Energy has announced ambitious plans to launch an initial public offering (IPO) in the second to third quarter of fiscal year 2027 (FY27), aiming to raise Rs 3,000 crore (approximately $350 million). This strategic move is set to fuel the company’s rapid expansion and strengthen its position in India’s burgeoning electric two-wheeler market, aligning with the government’s vision of electric vehicles comprising 30% of new vehicle sales by 2030.
Scaling Up Manufacturing to Meet Pan-India Demand
Founded in 2019 by Suhas Rajkumar, Simple Energy plans to deploy the IPO proceeds primarily to establish a larger manufacturing facility. This expansion is crucial to meet the growing pan-India demand for electric scooters, especially as the electric two-wheeler segment is expected to grow at around 20% year-on-year in FY25.
“As a homegrown cleantech startup, we take pride in being part of this movement, with 95% of our vehicle components manufactured in India, true to the Make-in-India mission,” said Suhas Rajkumar, Founder and CEO of Simple Energy. The company’s commitment to indigenous manufacturing not only supports local industry but also ensures cost efficiencies and supply chain resilience.
Ambitious Sales and Market Share Targets
Simple Energy is targeting a significant milestone of crossing 1 lakh cumulative scooter sales by FY27. The company currently operates in key states including Karnataka, Maharashtra, Goa, Andhra Pradesh, Telangana, and Kerala, and plans to extend its footprint aggressively.
The startup aims to expand its dealership network from the current 15 outlets to 250 across 23 additional states, thereby making electric mobility accessible beyond metropolitan areas into Tier 2 and Tier 3 cities. This expansion strategy is expected to increase Simple Energy’s market share from a modest 0.3% to 5% in India’s electric two-wheeler segment by FY27.
Financial Growth and Profitability on the Horizon
Simple Energy has demonstrated impressive growth, with nearly 500% year-on-year revenue increase. The company is targeting revenues of Rs 800 crore ($96 million) for FY26 and expects to surpass Rs 1,500 crore ($180 million) in cumulative revenue within the next 18 months.
Notably, the startup has already achieved gross margin breakeven within two years of commercial operations and is aiming for 15% gross margins in the coming year. EBITDA positivity is projected before the end of FY26, with net profitability targeted ahead of the IPO, signaling a strong financial foundation for prospective investors.
Strengthening the EV Ecosystem Across India
Simple Energy’s mission extends beyond just sales numbers; it is committed to empowering smaller cities and towns by enhancing electric vehicle accessibility. The company’s flagship scooters, Simple One and Simple OneS, have received positive market response, encouraging the startup to invest heavily in retail and service infrastructure.
By expanding to 500 touchpoints nationwide by FY27 and increasing service centers, Simple Energy is building a robust ecosystem to support EV adoption. This expansion will provide customers with better accessibility, service, and aftersales support, crucial for accelerating the transition to clean mobility.
Backed by Strong Investor Confidence
To date, Simple Energy has raised $41 million from a consortium of angel investors and family offices, including notable names like Balamurugan Arumugam (Chief Growth Officer at Klarity), Apar Industries promoter group, and the Haran and Velumani family offices. This funding has supported product development, manufacturing setup, and initial market expansion.
The upcoming IPO will enable the company to scale rapidly, invest in capacity enhancement, and solidify its leadership in the Indian EV market.
Simple Energy’s Rs 3,000 crore IPO marks a pivotal moment in India’s electric mobility journey. With a clear focus on scaling production, expanding retail presence, and achieving profitability, the startup is poised to play a significant role in driving India’s clean energy future and making electric two-wheelers a mainstream choice across the country.