FAAD Network exits Battery Smart at 61x ROI

FAAD Network, a SEBI-registered Category 1 Angel Fund based in Gurgaon, has announced a remarkable strategic exit from Battery Smart, yielding an impressive 61-fold return on investment. This exit, completed just 45 months after the initial investment, showcases FAAD Network’s exceptional investment acumen and timing. Battery Smart, a homegrown battery-swapping service provider for two and three-wheelers, has reached a valuation of USD 340 million (INR 2,842 crore). The startup offers advanced lithium batteries to electric vehicles through a membership-based model.

This exit from Battery Smart has proven to be a significant move for FAAD Network, allowing its founders and other investors to reap substantial financial benefits, with an approximate 370 per cent Internal Rate of Return (IRR) over the investment period. This success story highlights FAAD Network’s proficiency in identifying and supporting high-potential startups, resulting in considerable returns.

Battery Smart, founded by IIT Kanpur alumni Pulkit Khurana and Siddharth Sikka, specializes in providing efficient, cost-effective, and accessible Li-ion battery swaps for the two-wheeler and e-rickshaw market. FAAD’s investment played a crucial role in accelerating the company’s growth and Li-ion adoption, helping Battery Smart expand its operations to 30 cities with over 1,000 swap stations across India.

During the seed round in 2020, FAAD Network joined forces with Orios Venture Partners, Shish Ram Kharesiya (founder of BNM Retail), and other angel investors in a round led by Orios Venture. FAAD Network, with its 300 crore corpus, invests in early-stage companies across various sectors and geographies. In recent years, the Gurgaon-based fund has successfully exited from more than 10 investments, solidifying its position as a leading angel fund.

Dr. Dinesh Singh, Co-founder and Director of FAAD Network, expressed pride in the fund’s exit from Battery Smart at the remarkable 61x multiple. He emphasized that this exit not only validates their investment approach but also underscores their commitment to creating significant value for investors. Dr. Singh also highlighted FAAD’s contribution to the growth of the EV industry through investments in Battery Smart and other EV-related ventures, noting that Battery Smart’s current valuation demonstrates the immense potential within this sector.

As FAAD Network continues to identify and support innovative startups with the potential to revolutionize their industries, this recent exit reinforces its standing as a leader in the angel investment landscape. The fund remains dedicated to fostering growth and success for startups while ensuring sustained value creation for its stakeholders.

FAAD Network, established in 2019, is a SEBI-registered Category 1 Angel Fund with a corpus of 300 crore. The fund invests across diverse sectors and geographies, providing funding ranging from 1 crore to 4 crore from Pre-Seed to Series A stages. With a portfolio of over 100 startups and more than 10 successful exits, FAAD Network demonstrates its commitment to fostering innovation and delivering outstanding returns to its investors. Based in Gurgaon, FAAD Network continues to make strategic investments in the startup ecosystem, supporting the growth of promising new ventures.