Exponent Energy Launches EV Financing Arm Exponent One; New Entity Raises $2M From AdvantEdge Founders
•February 17, 2026
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Why It Matters
By unlocking affordable capital for millions of Indian commercial drivers, Exponent One could dramatically accelerate EV adoption and reshape the country’s mobility emissions profile.
Key Takeaways
- •$2M pre‑seed from AdvantEdge fuels Exponent One launch.
- •Real‑time energy data drives flexible loan structures.
- •Targets commercial three‑wheelers, LCVs, buses, trucks.
- •Only 20% of drivers currently secure EV financing.
- •Integrated asset management improves loan performance and scaling.
Pulse Analysis
India’s commercial vehicle fleet—estimated at over 10 million units—represents the largest untapped market for electric mobility. While policy incentives and expanding charging infrastructure have reduced technical barriers, financing remains the critical choke point. Drivers of three‑wheelers and light trucks often operate on daily cash flows, making traditional fixed‑EMI loans impractical and leading to high default rates. This financing gap has slowed the transition from diesel to electric, limiting the environmental and cost‑saving benefits that widespread electrification could deliver.
Exponent One’s model tackles the capital shortfall with a data‑centric lending engine. By tapping into Exponent Energy’s battery management system, charging station usage, and vehicle telemetry, the platform can assess creditworthiness based on actual earnings and asset health rather than static credit scores. This dynamic risk profiling enables income‑aligned repayment schedules, insurance bundles, and predictive maintenance alerts, reducing default risk and preserving asset value. The approach mirrors emerging fintech trends in emerging markets, where alternative data sources are reshaping credit access for underserved segments.
If successful, Exponent One could set a new standard for EV financing in emerging economies, attracting further venture capital and prompting incumbent banks to adopt similar data‑driven frameworks. Scaling the solution across India’s tier‑2 and tier‑3 cities would unlock millions of additional EVs, accelerating emissions reductions and creating a virtuous cycle of infrastructure investment. However, challenges remain in standardising data integration, managing regulatory compliance, and ensuring lender participation. Continued funding and strategic partnerships will be essential to translate the pilot’s promise into nationwide impact.
Exponent Energy launches EV financing arm Exponent One; new entity raises $2M from AdvantEdge Founders
Bengaluru-based EV energy startup Exponent Energy has launched Exponent One, a fintech and asset management platform focused on financing commercial electric vehicles, as it looks to remove one of the biggest bottlenecks slowing EV adoption.
The new entity has raised $2 million in pre-seed funding from mobility-focused venture capital firm AdvantEdge Founders.
Exponent One will be led by Sandeep Divakaran, a financing and mobility veteran who has held CXO roles at Ola and evfin by Greaves. Exponent Energy will hold a majority stake in Exponent One, which will operate as its subsidiary, with Divakaran joining as the co-founder and CEO.
Founded in 2020 by former Ather executive Arun Vinayak, Exponent Energy has built a full-stack energy ecosystem for commercial EVs, including battery packs, charging stations, and connectors capable of delivering full charge in 15 minutes.
The company says it has deployed a few thousand vehicles so far, primarily in the three-wheeler segment, and built a network of charging stations across pilot cities. Its battery systems are designed for commercial usage, offering up to 3,000 charging cycles and enabling high daily utilisation.
However, despite a widespread network, access to financing remains a major constraint preventing drivers from switching to EVs, Vinayak told YourStory.
“For every 100 drivers who put down a down payment to buy a commercial EV, only around 20 get financing,” he said. “Energy in EVs is fundamentally an upfront capex problem. Without solving financing, adoption cannot scale.”
Exponent One is designed to address this gap by offering financing, insurance, savings, and asset lifecycle management tailored specifically for commercial EV drivers and fleet operators. It will initially focus on electric three-wheelers, light commercial vehicles, buses, and trucks.
Solution based on income patterns and EV usage
As commercial EV drivers earn daily and have fluctuating income, fixed monthly EMI structures often lead to defaults despite underlying earning potential. Unlike traditional vehicle financing, which relies heavily on credit scores and fixed monthly instalments, Exponent One will use real-time data on vehicle, charging, and earnings from Exponent’s energy platform to assess risk and structure loans aligned to drivers’ income patterns.
“Drivers operate real-world businesses with variable daily earnings, but lending models still assume fixed monthly income,” said Divakaran. “Our goal is to build financing that adapts to how drivers actually earn, helping them succeed rather than penalising them.”
Exponent’s integration across batteries, charging infrastructure, and energy management gives it visibility into how vehicles are used, how much energy they consume, and how consistently drivers operate them. This “energy intelligence” allows the company to better understand asset health, predict residual value, and detect early signs of financial stress—capabilities that traditional lenders lack.
Exponent believes an integrated approach will not only improve loan performance but also accelerate its own growth by unlocking access to a much larger driver base. Financing, Vinayak said, is a critical lever in expanding beyond early pilots and scaling across cities and vehicle segments.
“By underwriting the vehicle, driver, and energy ecosystem together, we can expand access to EVs and scale much faster,” he said.
The $2-million funding from AdvantEdge Founders will be used to further develop Exponent One’s technology platform and expand partnerships with lenders and insurers.
“Commercial EV scale in India isn't just a technology challenge; it's a data and capital challenge,” said Kunal Khattar, Founder of AdvantEdge Founders.
“Lenders must understand how these assets actually earn and age to unlock true scale. By building a durable financial layer tailored to the EV ownership lifecycle, Exponent One is addressing the core risk mismatches that have held this industry back.”
Exponent sees Exponent One as a key component of its broader strategy to build a full-stack energy platform for commercial mobility. With India home to millions of commercial vehicles, the company believes financing innovation could play a decisive role in accelerating electrification.
“Exponent Energy powers the vehicle, and Exponent One powers the driver,” Vinayak said. “Together, they complete the ecosystem needed to scale commercial EV adoption.”
Feature image (L to R): Kunal Khattar, Founder of AdvantEdge Founders; Sandeep Divakaran, Co-founder and CEO, Exponent One; Arun Vinayak, Co-founder, Exponent Energy
Edited by Swetha Kannan
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