Energy management and electric vehicle (EV) charging startup ACS Energy has reported that it has managed to raise ₹1.1 crore of pre-seed funding. ACS Energy is majorly funded by Inflection Point Ventures (IPV), the first major vote of confidence in the vision of a seamlessly electrified, smartly managed energy future in the country.

Capital infusion and primary objective

The capital inflow is planned in such a way that it helps the company to achieve two-fold goals of rolling out its range of EV charging stations in major Indian states and establishing complex energy management systems in high-rise buildings in urban areas, thus becoming smarter in its distribution of power and energy, in general.

The majority of the new capital acquired is allocated to the active growth of the EV charging system of ACS Energy. The company has outlined ambitious strategies for installing more than 5,000 EV charging stations in the western Indian states of Maharashtra and Gujarat. The distinguishing characteristic of this intended network is that it will be based on UPI-enabled payment technology that will simplify the experience of EV owners.

The objective of this expansive network by ACS Energy is to ensure a drastic improvement in access to charging homes and businesses in these areas of high growth. Both the company leadership and its main investor emphasized the decision to integrate the UPI system, which is the keystone of digital commerce in India.

In addition to the immediate growth of the charging network, much of the pre-seed capital will be used to develop the software and technology capabilities of the company. In particular, the financing will be used to come up with superior energy management systems that will suit buildings that are high rises. This project will respond to the issue of accommodating massive power demands, such as EV charging in urban grids.

The key aim of the company in this respect is to introduce intelligent power distribution and load balancing capabilities, so that urban areas will be able to use energy more efficiently. This trend involves the introduction of AI-based Energy Management Systems, which would assist buildings and DISCOMs (distribution companies) in managing the load in a smart  way. 

Market growth and government support

This funding round is strategic because the Indian EV charging infrastructure market is experiencing rapid growth. The domestic market is estimated to have about $450 million this year alone. The industry projections show that the growth will be accelerated and the industry is likely to reach $13 billion by 2032, a growth that will show a projected compound annual growth rate of more than 30%. This local development is taking place in a broader international environment in which the market is expected to grow as much as $400 billion by 2034 due to the extensive electrification efforts and the introduction of smart-grid technologies.

ACS Energy is also expanding rapidly in those areas where the adoption of EVs is growing at an alarming rate, and now has hubs of operation in Mumbai, Pune, Ahmedabad, Kerala, and Surat. By focusing on these major cities and emerging EV centers, the company will be able to create a strong network between urban populations and emerging EV networks.

Government support, especially the PM E-DRIVE scheme with its enormous budget of ₹10,900 crore, presents a significant opportunity to companies like ACS Energy. The scheme will result in a significant amount of new charging stations, both public and residential, providing the company with an excellent chance to work on governmental and utility-related projects, as well as ensuring that it becomes one of the drivers of the future of the Indian EV ecosystem.

Conclusion

Inflection Point Ventures contributed ₹1.1 crores as the pre-seed investment that gives ACS Energy the capital base required to commence the swift, dual-headed expansion plan. The company is directly addressing two key issues within the Indian energy transition, both in providing access to EV charging and in terms of efficiency in citywide power delivery. With the first UPI-enabled charging network nationwide, the company is also rolling out AI-based energy management systems in high-rise buildings. This investment will make ACS Energy’s mission toward making charging easier and more efficient in its use of energy, thereby becoming one of the enablers in the accelerated mobility future of India.