Arun Vinayak has gone from building Ather as its CPO to turning his focus to building the infrastructure to support the EV boom in the country. Now Exponent plans to expand, but sustainably, keeping an eye on unit economics and profitability
Arun Vinayak and Sanjay Byalal set up Exponent Energy in 2020. Image: Amit Verma
From Day Zero, it was a chicken-and-egg problem. Back in 2014, Arun Vinayak was busy tackling the first part of the equation: Chicken. “Nobody believed in electric vehicles (EVs),” recalls the IIT-Madras grad, who was the founding partner and chief product officer at Ather. “In fact, nobody even believed that we could make EVs.” And the scepticism was valid for a bunch of reasons.
First, for a country that has grown up on petrol and diesel, EVs were alien. They were extra-terrestrial objects. Second, the product lacked credibility because it was not backed by a brand. So even when EVs started to sound credible, the whole idea that an EV can be better than legacy fuel—in terms of technology, speed, comfort, efficiency and quality—was an incredible thing to think of. “Starting up on EVs was considered a sure-shot failure,” recalls Vinayak. Third, in top cities where petrol pumps could be spotted as easily as a Domino’s delivery bike, the absence of EV charging stations added fuel to the belief that EVs won’t work in India. “Where and how will you charge?” was the right question to ask. Vinayak and his team, though, were busy feeding the chicken. Six years later, there was no question mark on EVs. By 2020, Ather established itself as a quality leader.
Closer to the end of 2020, Vinayak turned his attention towards the second part of the problem: Egg. Though EVs were spotted on the road—and there was enough intent on the part of consumers to buy them—they had not become a mass product. Potential energy didn’t convert into kinetic energy. “It was no longer about the vehicle, but the energy ecosystem which was broken,” says Vinayak. Consumers had three pressing questions: Where do I charge? How long will it take? And how long will my battery last? And there were no answers. “That triggered us to start Exponent Energy,” says Vinayak, who along with Sanjay Byalal, co-founded the energy-tech startup in October 2020.
Though Vinayak found the egg, it was tough to hatch it. “Again, nobody believed us when we said that we would charge vehicles in 15 minutes,” smiles the co-founder and CEO of Exponent, which raised $5 million in its pre-Series A round of funding in December 2021, and started commercial operations in March 2023. If rapid charging batteries and technology looked like a fantasy tale, then there was another problem which had become incredible: Can the EV charging business ever be profitable? Well, if the business had to make money, then scores of vehicles have to be charged in a short span of time. Fast charging was the only solution.