RACE Energy tripled its revenue in FY24, clocking Rs 9 crore, up from Rs 3 crore in FY23.
Founded in 2018 and headquartered in Hyderabad, RACE Energy is a deep-tech electric vehicle infrastructure company focused on building a smart, connected, and sustainable mobility ecosystem. It specializes in swappable battery packs and integrated EV solutions for two- and three-wheelers India’s most widely used modes of transport. Its key offerings include the RxEV300 Electric Propulsion Kit, RACE M1 Swappable Battery Pack, Battery Swapping Network, and the R-VIS Vehicle Monitoring Platform.
The company has raised a total of Rs 38.55 crore across three funding rounds, with the latest pre-Series A round closed in May 2023. Co-founders Arun Sreyas Reddy and Gautham Maheswaran hold 34.73% and 11.83% of the company, respectively, while GrowX Ventures owns 13.05%. The ESOP pool accounts for 5.51%.
Expenses more than doubled to Rs 17.3 crore in FY24, up from Rs 8 crore in FY23. Employee benefit costs stood at 27.2% of total expenses in FY24, up from 22.5% in FY23. Cost of materials remained consistent at 27.2% in FY24 compared to 30% in FY23. Advertisement costs declined to 1.5% in FY24 from 3.2% in FY23, while finance costs rose significantly to 5.2%, from 1.25% in the previous year.
Losses widened to Rs 8.3 crore in FY24 from Rs 5 crore in FY23. However, the company’s EBITDA margin improved sharply to -76.34% in FY24 from -169.98% in FY23. Return on Capital Employed (ROCE) dropped to -90.54% in FY24, compared to -30.74% in FY23, reflecting higher capital deployment during the expansion phase.