Swappack

Lithium swap packs for small-town e-rickshaw drivers stuck with lead-acid

Climate Tech IoT Tier 2–3 Cities

TL;DR Swappack gives e-rickshaw drivers in smaller towns a lithium battery they never have to buy. They pay per swap at a nearby shop counter instead of buying another lead-acid set. The pitch works best on one specific day - the day the old batteries die and the driver is staring at a big bill.

The problem

E-rickshaws are everywhere in north Indian towns, and a lot of them still run on lead-acid batteries. One manufacturer puts their life at 6–12 months, with 10–12 hours to charge and about 60 km per charge[1]. So a driver loses most of the night to charging and replaces the whole set roughly once a year.

Lithium fixes most of this but costs more upfront. PM E-DRIVE pays incentives only on new vehicles with "advanced" batteries[2], so a driver who already owns a lead-acid e-rickshaw gets nothing for switching. And the swapping networks that exist grew up in big cities first, which matches the government's own draft plan of metros before smaller cities[3].

The idea

What it does, in regulatory terms: a battery-as-a-service and swapping operator. Swappack owns the batteries and rents energy by the swap. The packs must meet the AIS 156 and AIS 038 Rev 2 traction-battery safety standards[3], and Swappack registers under the Battery Waste Management Rules for end-of-life handling[4]. Changing an existing e-rickshaw from lead-acid to a lithium pack may touch that model's type approval, so check with the testing agency first.

Partner shops (a mobile repair counter, a kirana, a spare-parts dealer) host a small cabinet that charges a handful of packs. A driver pulls in, swaps in a few minutes and pays by UPI. Every pack carries a tracker and a battery-management chip, so Swappack can see health, location and misuse.

The original version of this idea was automated swapping to cure range anxiety. I don't buy that. Private EV owners mostly charge at home, and robotic swap stations are built for cars. In India swapping pays where vehicles work all day and batteries are small, which is why the draft policy targets two- and three-wheelers[3].

Who pays

The driver pays, and that's often a rider who rents the vehicle by the day or owns it on a loan. The comparison in their head is the lead-acid set they'd otherwise buy every year[1]. I found no published per-swap price from Indian operators, so you'll have to test pricing on the ground. Financiers and vehicle dealers are a second channel, since a swap plan can bring down the upfront price of a new e-rickshaw.

Why now

Battery packs keep getting cheaper. One energy research firm put the global average at $115/kWh in 2024, about ₹11,100/kWh, with China at $94[5]. More than 1,000 swap stations were already running by 2023[6], so city drivers have seen the model. A government report is now flagging the 18% GST on battery services against 5% on EVs[7], which may ease.

Market signal

There's no public count of lead-acid e-rickshaws or of what their drivers spend on batteries. One estimate puts India's swapping market at US$10.2 million in 2022, rising to US$61.57 million by FY2030[6], about ₹99 Cr to ₹596 Cr. BEE quotes that figure secondhand, so treat it as rough. PM E-DRIVE set aside ₹192 Cr for e-rickshaws and e-carts[2].

Who's already doing this

The biggest swapping network for electric two- and three-wheelers sells pay-per-use swaps[8]. Another large network claims more than 2,000 active stations and a tie-up with a state-run oil company[9]. Both are strong in cities. The gap is narrower than it looks though - you have to map, town by town, where neither has stations and lead-acid is still the norm.

How hard is it?

Difficulty Hard (61/100)
Starting capital ₹5.8–13.8 Cr
Time to launch 9–12 months

Batteries swallow most of the money before the first rupee comes back. Then you have to keep each pack busy enough to pay for itself, stop theft and abuse, and run dozens of partner counters reliably in towns where power cuts are a daily thing.

Licences and approvals

Yes, this one is regulated. You're putting lithium packs into public hands, so safety and waste rules apply from day one.

  • AIS 156 and AIS 038 Rev 2 battery safety compliance, tested at an approved agency, before the first pack goes into a vehicle[3].
  • Producer registration under the Battery Waste Management Rules, 2022 on the CPCB EPR portal, before you start supplying packs, with annual returns after that[4].
  • Type approval check with the vehicle maker and a testing agency on swapping chemistry in an approved e-rickshaw, before launch. Get the answer in writing.
  • Electrical load and fire safety checks at every partner shop, before its cabinet goes live. The draft policy doesn't treat these shops as charging stations[3].
  • Company registration with the MCA and GST registration, before selling. Battery services attract 18% GST against 5% on EVs[7].

Building this outside India? The categories above usually have a local equivalent, so check with your own regulator.

How AI can power this business

  • Pack health forecasting. The battery chip already logs every charge cycle. A model on that data can flag packs that are ageing fast so you retire them before they strand a driver.
  • Misuse and theft alerts. Unusual location patterns, deep discharges or tampering show up in tracker data, and a simple anomaly model can raise them the same day.
  • Cabinet stocking. Forecast swap demand per counter by hour and day, so the field team moves packs to busy shops before the morning rush.
  • Driver support in local languages. A voice or chat-app assistant can answer "where's the nearest counter" and billing questions without a call centre.

Don't let a model decide alone that a pack is safe to keep in service. Battery safety calls need a technician and test data.

Want to work out the AI layer for Swappack? Talk to Yash →

Biggest risks

  • Low pack utilisation. If each pack gets swapped too rarely then the battery cost never pays back.
  • A bigger network arrives. One of the big city swap networks could walk into your town with deeper pockets.
  • Battery safety. A fire at a partner shop would kill trust in the brand overnight.

Our take

This is a capital-heavy business, plain and simple. It suits a founder with battery or vehicle-finance experience and access to debt, and it is not for anyone hoping to stay asset-light. Before raising, prove two things in one town - 150 drivers swap at least once a day for three months, and packs come back without damage.

Questions founders ask

Plan for roughly ₹5.8–13.8 Cr, and most of that goes into the batteries themselves. Debt matters more than equity here.

Do I need a licence to start a battery swapping business in India?

Yes, in effect. Packs need AIS 156 and AIS 038 Rev 2 compliance, and you register as a producer under the Battery Waste Management Rules before supplying them.

Can I start a battery swap service in another country?

Yes, wherever small electric three-wheelers work all day. Check your local battery safety standards and battery waste rules before you buy stock.

Download the kit

The free Swappack validation kit has the line-by-line capital breakdown, the effort scoring, the battery-safety and EPR checklist, a 14-day validation sprint with pass/fail targets, a 90-day launch plan, 10 interview questions for drivers and partner shops, and 5 assumptions to test. Download the kit →

Talk to Yash

Thinking about building Swappack or something close to it? The make-or-break work is financing the battery fleet and keeping every pack busy, and I've helped founders think through exactly this kind of asset-heavy build. If you need a hand, you know where to find me. Talk to Yash →

Sources

  1. Capco Industries, "Electric Vehicles Today & Tomorrow; Indian prospective of E-rickshaws", 2021-01-18. https://www.capcoindustries.com/blog/electric-vehicles-today-tomorrow-indian-prospective-of-e-rickshaws
  2. Ministry of Heavy Industries, "PM E-DRIVE Scheme notification S.O. 4259(E)", 2024-09-29. https://heavyindustries.gov.in/sites/default/files/2024-09/notificatioin_29.03.2024_pm_e_drive.pdf
  3. NITI Aayog, "Battery Swapping Policy (draft)", 2022-04-20. https://www.niti.gov.in/sites/default/files/2022-04/20220420_Battery_Swapping_Policy_Draft.pdf
  4. CPCB, "EPR Portal for Battery Waste Management", official site, accessed 2026-10-18. https://eprbattery.cpcb.gov.in/
  5. BloombergNEF, "Lithium-Ion Battery Pack Prices See Largest Drop Since 2017, Falling to $115 per Kilowatt-Hour", 2024-12-10. https://about.bnef.com/blog/lithium-ion-battery-pack-prices-see-largest-drop-since-2017-falling-to-115-per-kilowatt-hour-bloombergnef/
  6. Bureau of Energy Efficiency, "India EV Digest 2023", 2023. https://beeindia.gov.in/WriteReadData/L45218/9263057796208091.pdf
  7. Ministry of Heavy Industries, "Aggregation of Multi-Sectoral Long-Term Battery Storage Capacity Demand and Long-Term Action Plan", 2026-03. https://heavyindustries.gov.in/sites/default/files/2026-07/report_on_aggregation.pdf
  8. Battery Smart, official site, accessed 2026-10-18. https://www.batterysmart.in/
  9. Sun Mobility, official site, accessed 2026-10-18. https://www.sunmobility.com/

For illustration only. Names are fictional and ideas hypothetical; sourced facts are real but may be out of date. Nothing here is legal, financial or professional advice, and Yash Khatri is not personally liable for any use of it. Read the full disclaimer.

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