EV ownership solutions provider Vidyut secures USD 10M in Series A

Vidyut, a Bangalore-based EV ecosystem startup, has secured USD 10 million in a Series A funding round. 3one4 Capital led the round, with participation from various investors, including Saison Capital, Zephyr Peacock, Force Ventures, Alteria Capital (a venture debt fund) and Udaan CEO Sujeet Kumar. The Series A round consists of both equity and debt funding. So far, the 2-year-old Bengaluru-based startup has raised $14 Million.

The startup plans to use the funds to expand its offerings within the EV ecosystem, including EV insurance, lifecycle management, and EV resale, with the goal of streamlining the entire EV ownership process. Additionally, Vidyut aims to extend its reach to 40 cities across India and intends to double its team size by the end of FY-25.

“Electric vehicles pose new underwriting and product structuring challenges to financiers. EVs also meaningfully expand the role of data in the lifecycle of a financing journey and make new lending models possible. Vidyut’s model removes EV adoption barriers, especially in the large but price sensitive driver cum owner segment. At 3one4 Capital, we are excited to back the Vidyut team in their mission to simplify EV ownership,” said Sonal Saldanha, Vice President, Investments, 3one4 Capital.

Vidyut is seeking partnerships with non-banking financial companies (NBFCs), banks, and original equipment manufacturers (OEMs) such as Mahindra, Piaggio, and the Murugappa Group’s Montra Electric to enable easier ownership of electric vehicles (EVs) for gig workers and small and medium-sized businesses (SMBs). The company offers a battery subscription ownership plan, supported by its asset-underwriting algorithms. It already provides ownership solutions for various companies, including Mahindra, Piaggio, Altigreen, Murugappa Group’s Montra Electric, Euler Motors, and OSM vehicles. The company’s asset-underwriting algorithms and battery health data analysis facilitate cost-effective financing through a battery subscription model. This approach is intended to make EVs more accessible, according to the company’s claims.

“The growth of EVs, particularly small sized commercial vehicles, is driven by the attractive lower total cost of ownership relative to internal combustion engine (ICE) vehicles.  We are excited to be a part of Vidyut’s incredible journey  as they build their business and democratize EV ownership in India,” added Mukul Gulati, Managing Partner, Zephyr Peacock.

“After hitting an inflection point, customized financing and lifecycle management solutions will play a central role in large scale EV adoption, requiring lenders to evaluate asset risk alongside borrower risk. Through its unique offerings, VidyutTech addresses this whitespace by passing on the favourable TCO of an EV to users upfront. We’ve been fortunate to witness Xitij and Gaurav’s strong execution ability since their early days and are excited to partner with them as they catalyse India’s transition to sustainable mobility.” said – Dhairen Tohliani, Vice President, Alteria capital.

“The adoption of EV is inevitable and this is creating a massive need for redefining the overall EV ownership experience. We believe EV financing and lifecycle management needs differentiated products and solutions. We are excited to partner with the team at Vidyut Tech, who are building out this differentiated approach to EV ownership and are eventually looking to power India’s EV ecosystem.” added – Visa Kannan, Partner, Saison Capital.

“This investment is a testament to our innovative approach in combining technology and financial services to serve the EV market. Our focus is not just on financing but on elevating the entire EV ownership journey for India’s SMBs, who are the backbone of our economy. We’re glad to welcome long term partners like 3one4 and Saison to our captable and deliver a seamless, integrated experience for our customers,” said Gaurav Srivastava, co-founder of Vidyut.

Also read: Commercial EV startup Turno comes out of stealth mode; raises USD 3.1 million