In a conversation with Nitisha Dubey from EFY, Raman M. of chargeMOD, elaborated his goal of developing virtual power plants by decentralising power production.
Q. What does chargeMOD do?
A. Our company was founded in 2019, focusing on developing energy technologies such as electric vehicle (EV) charging, power electronics, postmark energy tech hardware, and grid-side technologies. Despite the challenges posed by the pandemic in 2019, we began most of our operational work in 2021-22 and process of monetisation in early 2022. We specialise in designing, deploying, and operating EV chargers and are committed to advancing clean energy technologies.
Q. What inspired your company’s founding idea, and how’s the journey?
A. During college, our team created an electric two-wheeler, successfully prototyping a vehicle with a range of 70 to 100 kilometres by 2019. However, our region’s lack of infrastructure—zero public chargers—led us to pivot. We focused on developing distributed, decentralised charging ports through our platform, chargeMOD, to support the growing EV ecosystem. Initially, chargeMOD aimed to connect EV drivers with charging stations, akin to Uber’s model. However, realising the high hardware cost, which was not manufactured in India, we shifted to designing the core technology and IP. This allowed multiple manufacturers to produce the hardware, fostering a more inclusive ecosystem.
Q. How does your IP ownership model benefit your business?
A. We own the intellectual property (IP) for the entire control board and systems. Even though multiple manufacturers produce these devices, the IP remains ours. We transfer this IP to companies such as Keltron, a Kerala-based electronic manufacturing company, enabling them to manufacture and sell the devices. We earn royalty on the devices’ sales. This model allows us to retain ownership of the IP, provide software operations, and earn royalties on the devices sold by our partners.
Q. Which products does your company offer?
A. We offer both hardware and software products. Our hardware products include EV chargers categorised into levels one, two, and three. Level one chargers are for residential use, providing a faster charging experience at home. Level two chargers offer quicker charging, typically taking three to four hours compared to the 10 to 12 hours of level one chargers. Both level one and level two chargers use alternating current (AC). On the other hand, level three chargers are DC chargers that deliver power directly to the battery at a much higher rate, starting from 30 kilowatts. These chargers can fully charge a vehicle in 18 to 50 minutes. We manufacture chargers ranging from 3.3 to 360 kilowatts, covering all three levels.
Unlike petrol stations, EV charging stations are not as well-known or easily found. We’ve developed hardware devices and a platform that helps users locate and identify chargers to address this. This approach ensures that customers setting up a charger through us gain exposure to nearly 100,000 EV users. These users can easily access the chargers with a tap on their mobile devices, as all stations are unmanned. Customers can plug in, use the mobile app, and charge their vehicles independently. Currently, we manage around 2500 unmanned stations.
Q. How does the app enhance EV charging convenience?
A. The app provides charger locations and availability based on the selected vehicle type, offering intelligent ecosystem changes. For instance, when selecting TATA.ev, the entire ecosystem adapts based on the vehicle. The app displays nearby chargers and their status, such as available or in use. Users can check if a charging point is finishing a session and the current SoC indicating availability for use. The app also offers a suite of value-added services, including EV routing, accessing roaming partner networks, lounge access, auto charge, and RSA (TBA soon). The EV routing feature will allow customers to select routes from Bengaluru to Cochin, with all charging points and roads displayed for easy navigation. The app’s profile section provides insights into customers’ charging history and activities. Payment is based on a subscription model starting from INR 99, offering flexibility based on the customer’s needs.
Q. How does chargeMOD integrate chargers from different manufacturers?
A. The chargeMOD software can connect to chargers from any manufacturer, such as ABB, Siemens, or Bosch, seamlessly integrating them into the chargeMOD CONSOLE (charging station management system). This flexibility allows the incorporation of multiple manufacturers’ chargers into the same software, simplifying charging station business setup. At present, chargeMOD has integrated more than 25 OEM chargers into their network.
Q. How does chargeMOD handle charging station partnerships?
A. We establish a primary MoU with independent installers and OEMs, depending on the charging station setup and the real estate location. Our core expertise and customer base are in the south, so setting up stations in the north may not immediately yield expected revenues. To address this, we have roaming agreements with existing players in the north and south. This allows users to ‘roam’ between locations using the chargeMOD network.
Q. What is the revenue-sharing model for chargeMOD?
A. We have an agreement with the client who sets up the devices. When we manage everything, we receive a small percentage of the total transaction, typically 10% to 15%. The remaining 90% of the revenue goes to the person setting up the charging station or the franchise owner.
Q. How does chargeMOD generate revenue?
A. We generate revenue in two ways: first, through charging transactions on our network, where we receive 10% to 15 % depending on factors like real estate, location, and viability. Second, we generate revenue by selling hardware.
Q. What is chargeMOD’s approach to decentralising power production?
A. The distribution network is our biggest challenge. While setting up a 50 kilowatt solar plant is relatively easy, utilising its energy requires a distribution network. Selling energy from a power plant with an established distribution network is straightforward. Our goal is to develop virtual power plants by decentralising power production. We aim to have several small kilowatt capacity plants instead of one large plant with megawatt or gigawatt capacity at different locations. These decentralised plants will be integrated into a single console to calculate our energy derivations. This is the next stage for chargeMOD.
Q. How will you monitor energy transactions?
A. We will use blockchain technology to monitor energy transactions by setting up solar power plants and converting decentralised sources into virtual power plants.
Q. What is the progress of the virtual power plant initiative?
A. Construction is underway for an almost two-megawatt plant in Tamil Nadu and Kasipur. While it is not yet completed, we anticipate it will be commissioned soon.
Q. How is your company shifting to green energy sources?
A. Our goal is to achieve complete sustainability by 2025-2026. We consume approximately 400,000 to 500,000 units of electricity monthly, with only 40% sourced from clean energy. We aim to reduce the portion of non-clean electricity to 20% by 2025. By 2025, we anticipate that 80% of the energy transferred through chargeMOD will be green and clean.
Q. What is the customer distribution among vehicles?
A. Our diverse customer base consists of about 40% four-wheelers, 35% two-wheelers, and 25% three-wheelers utilising our network. Among two-wheelers, those employed by Swiggy and Zomato are particularly prevalent. We have installed slow chargers every five kilometres and high-speed chargers every 30 kilometres in Kerala. Due to our superior service and competitive rates, we hold nearly 90% of the market share in public charging activity in Kerala.
Q. Who are your target audience?
A. We categorise our customers into regular two-wheeler, three-wheeler, and four-wheeler users. Currently, three-wheelers generate the most revenue, while four-wheelers contribute the least. This trend may change as the number of vehicles increases, with four-wheelers potentially becoming the most revenue-generating segment by 2026 and 2027.
Q. Who are your key clients and collaborators?
A. One of our notable clients is the Murugappa Group, for whom we provide exclusive hardware and software solutions for the Montra Classic electric vehicles. Additionally, we have collaborated with L&T and several other OEMs under non-disclosure agreements (NDAs), supplying them with control and communication architecture solutions.
Q. Are components sourced locally or internationally?
A. In India, high-quality semiconductors are mainly sourced from Germany or China, with German products being expensive. While parts like enclosures and copper-intensive components are made in India, small parts such as chips and SiCs are sourced from third parties. Discussions with vendors suggest that these components may become available locally in the next few years. Approximately 70% of our product’s total cost is incurred in India, with the rest sourced from outside vendors.
Q. How has your revenue grown since inception?
A. We officially established our business in 2019, but operations began in 2021. From 2021 to 2023, revenue was approximately 8.4 million in the first year. The second year saw a significant increase to around 22.4 million, and in the current third year of monetisation, we are nearing 100 million. Our growth has been steady, averaging between 300% and 400% annually, a rate we aim to maintain for the next two years.
Q. What are the price ranges for your chargers?
A. The basic 3.3 kilowatt version starts at INR 7000 and goes up to 2.5 million for the 60 kilowatt (upgradable upto 240kW) charger. Ultra-quality chargers can cost up to 2.5 million. Prices start from INR 6000 for smaller devices and can reach 2.5 to 3.0 million depending on the charging rate and size requested by the client.
Q. Are you seeking vendors or partners for the project?
A. As a startup, everything is achieved through mutual association and consensus. We are looking for franchisees and distribution partners in various states, mainly focusing on South India, and are open to opportunities in Central, North, and Northeast India. Those interested can explore our franchise distribution model if they have existing capabilities. Given the policy-driven nature of the EV charging business, involvement requires some policy-related connections due to government initiatives.
Q. Are there any upcoming projects in the pipeline?
A. Our work is going on in Himachal Pradesh. This pilot project involves installing chargers on electric posts to avoid additional real estate costs, which can be expensive, especially on main roads. The chargers will connect directly to the power line, providing a 7 to 11 kilowatt charging rate, faster than slow but not the fastest. We are in discussions with the HP Electricity Board, and the project is expected to be completed within two to three months.
Q. Do you have plans for innovation collaborations with colleges or institutions?
A. We partner with several institutions, including VIT, TPM, and CET. We also focus on developing new products with our industry partners. For example, with VIT, we are working on a new rectifier and AC-DC converter for fast-charging two-wheeler. We also focus on developing new products with our industry partners. For example, with VIT, we are working on a new rectifier and AC-DC converter for fast-charging two-wheelers. This new technology aims to create a dual version compatible with both Ola and Ather vehicles, addressing the current issue of incompatibility between their chargers.
