The Tiger Global backed Battery Smart -needs to get smarter about swapping - Whose fault is it when an EV battery melts?
That's the intermediate query in our today's article, and one that three-year-old battery-swap company Battery Smart needs to find prompt answer. The Tiger Global-backed startup, which raised an impressive Rs 193 crore (~$25 million) in June 2022, has created an “Airbnb-like” model for battery swapping. But this business model might be burning a literal hole in their pocket.
In a dingy bylanes of Sitapuri, a west-Delhi neighbourhood where a Battery Smart franchise recently caught fire. And it’s not just Battery Smart. In May, a fire incident at a battery swapping station belonging to Yulu in Bengaluru raised concerns as well. This lithium-ion batteries can catch fire due to a number of reasons, from manufacturing defects to the temperature at which they're stored. Who's ultimately responsible? Battery Smart can't forever eschew quality and safety for an asset-light, fragmented operational model.
Spreading the risk through franchises is a bold move. The market of electric three-wheeler rickshaws has huge potential, too, with 100,000 already on the road. But before swapping becomes more mom-and-pop retail, it needs standards, quality checks, and a clear line of responsibility. And Battery Smart might be the one who has to figure it all out.
