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EV Startup BattRE Sees Decline in Revenue and Profits in FY23

Updated: Mar 26

Despite experiencing significant growth in the previous fiscal year, EV mobility startup BattRE faced challenges in FY23, with its revenue and profits taking a hit.


BattRE, which is backed by Agility Ventures, witnessed a four-fold growth in FY22. However, the startup failed to achieve double-digit growth in FY23, and its profitability saw a sharp decline of 87% compared to the previous fiscal year.


According to the company's annual financial statements filed with the Registrar of Companies, BattRE's revenue from operations decreased by 6.5% to Rs 87 crore in FY23, down from Rs 93 crore in FY22.

Established in 2017 by Nischal Choudhary and Pankaj Sharma, BattRE specializes in manufacturing two-wheeler electric scooters, offering three models named Storie, Loev, and One. The company claims to have a presence across more than 400 outlets spanning 21 states in India.


The sale of scooters constituted the primary source of income for BattRE, accounting for 97.7% of the total operating revenue, which declined by 5.6% to Rs 85 crore in FY23. The remaining revenue was generated from the sale of allied services.


In an effort to facilitate sales, BattRE forged partnerships with eight financial institutions, including Bajaj Finance, ICICI Bank, Credit Fair, and Loan Tap.


For the EV manufacturing unit, the cost of procurement accounted for 79.3% of the total operating expenses, remaining constant at Rs 69 crore in FY23. Other expenses such as employee benefits, import customs, freight, transportation, sales, marketing, legal, and overheads contributed to the overall cost, which amounted to Rs 87 crore in FY23, slightly lower than Rs 89 crore in FY22.


The stagnant revenue negatively impacted BattRE's profitability, resulting in a significant decline of 87% to Rs 50 lakhs in FY23, down from Rs 3.84 crore in FY22. Additionally, the return on capital employed (ROCE) and EBITDA margin deteriorated to 11% and 2.8%, respectively. On a unit level, BattRE spent Rs 1.00 to earn a rupee in FY23.


BattRE faces stiff competition from established players such as Ola, which reported an income of Rs 2,631 crore in FY23, and Ather, with a turnover of Rs 1,784 crore in the same period. Other key players in the market include Bounce, Okinawa, and Pure.


The future appears challenging for smaller players like BattRE, especially as larger and more established competitors intensify their efforts in the EV segment. With TVS and Bajaj making significant strides in the market, BattRE may face uncertainties ahead, unless it introduces a breakthrough offering to distinguish itself from the competition.


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