EV startup Simple Energy on Friday reported a widened net loss of Rs 62.59 crore in the year ended March 31st compared to Rs 25.90 crore in the previous year, bogged down by rising expenses.
The company also reported revenue from operations of Rs 6.57 crore compared to not recognising any revenue in the previous year. The revenue was helped by rising demand for its two-wheelers, according to the company, which began deliveries in June 2023.
Founded in 2019, Simple Energy had deferred the deliveries of its two-wheelers multiple times before beginning to ship them last year.
In July, the company raised $20 million in a Series A funding round from its existing investors to scale up production of its e-scooters–the Simple One and Simple Dot One.
Additionally, the newly raised capital is also expected to be used to help the company enter into new markets, expand its presence in the country and building new products.
Amid this, the electric vehicle (EV)-maker reported a 149% rise in expenses during FY24 as employee benefit expenses, inventory related expenses along with finance costs rose during the year.
Manufacturing EVs are considered to have lower profit margins with many Indian original equipment manufacturers struggling to achieve profitability due to high production costs and tighter economies of scale.
Currently, the company competes with listed entity Ola Electric and IPO-bound Ather Energy, both of which are yet to become profitable. Ola Electric has undertaken a restructuring process that will affect around 450-500 employees over the next month to help the company reach profitability.
