Business Model
How SparkGrid earns money, and where the economic quality actually comes from
The fictional company does not win only by installing more chargers. It wins by choosing the right sites, signing the right power contracts, and pushing higher throughput through each point.
42%Energy resale spread from public charging
25%Fleet subscription and depot management
19%Charger software and uptime analytics
14%Advertising, carbon and partner fees
Revenue streams
1
Charging energy spread
SparkGrid buys power, manages demand charges, and sells charging sessions to retail and fleet users. The spread per kWh is the core gross profit driver.
2
Fleet contracts
Fleet customers pay for access, reserved slots, usage analytics and uptime guarantees. This creates more visible demand than walk-in traffic.
3
Software layer
The platform monitors charger health, power load and pricing. Better software can improve utilisation without matching capex growth.
Unit economics snapshot
| Driver | Teaching assumption | Why it matters |
|---|---|---|
| Installed cost per point | ₹18 lakh | Sets reinvestment intensity |
| Average utilisation | 42% | Controls kWh throughput |
| Blended spread | ₹7.8 per kWh | Drives gross profit |
| Uptime | 97.2% | Protects contracted fleet revenue |
| Maintenance cost | 8.5% of revenue | Tests operating leverage |
Class discussion: If utilisation rises from 42% to 52%, does value rise in a straight line? Not exactly. The answer depends on power costs, peak demand charges, maintenance load and additional capex.