Simple Energy's Innovations in Electric Two-Wheelers
Electric two-wheeler manufacturer, Simple Energy, plans to launch an Initial Public Offering (IPO) in 2026-27 (FY27). The company has made significant advancements by becoming India's first Original Equipment Manufacturer (OEM) to produce Heavy Rare Earth (HRE)-free motors. This development reduces reliance on Chinese imports, which faced restrictions earlier this year.
Key Innovations and Localisation Efforts
- The innovation stems from a patented motor architecture developed by Simple Energy's in-house R&D team.
- Heavy rare earth magnets were traditionally used in electric vehicle (EV) motors due to high torque density and compact size.
- Simple Energy has achieved 95% localisation across its manufacturing and supply chain, promoting self-reliance.
- The company has replaced heavy rare earth magnets with optimised compounds, aided by proprietary algorithms managing heat and torque in real-time.
- The innovation allows for high performance without compromising sustainability or independence.
Strategic Advantages and Production
- Simple Energy manufactures its own motors, allowing full control over design, testing, and deployment.
- The company operates a 200,000 square feet manufacturing facility in Hosur, Tamil Nadu.
- This approach has helped them develop an in-house solution faster than competitors.
Challenges in the Industry
- Supply chain disruptions have affected competitors like Bajaj Auto, which dealt with production challenges and reduced output for its Chetak electric scooter.
- Securing supply of rare earth magnets and other key materials remains a critical task for the industry.
Company Growth and Future Plans
- Simple Energy was founded in 2019 by Suhas Rajkumar and Shreshth Mishra.
- It has secured over $41 million in funding from prominent investors.
- Currently, Simple Energy offers two products: Simple ONE Gen 1.5 (248 km) and Simple OneS (181 km).
- The company has 46 showrooms across major cities and plans to expand to 150 new stores and 200 service centers by FY26.
- The upcoming IPO aims to raise $350 million to boost product innovation, manufacturing, and market expansion.