Raising the Bar for Electric Vehicles: Vidyut Secures $10 Million in Series A Funding

Vidyut, an EV financing and vehicle lifecycle management platform based in India, has successfully raised $10 million in its Series A round, led by 3one4 Capital, with participation from new and existing investors. The round is a mix of equity and debt funding, and the company has raised a total of $14 million in funding since its inception in 2021. Vidyut offers EV insurance, lifecycle management, and EV resale, and it aims to expand its presence to 40 Indian cities.

Key Highlights

• Fundraising Round: Vidyut raised $10 million in its Series A round, led by 3one4 Capital, with participation from new and existing investors.
• Expansion Goals: The company aims to expand its presence to 40 Indian cities.
• Team Growth: Vidyut will double its team size by the end of FY25.

“Indian EV financing and vehicle lifecycle management platform Vidyut raises $10 million in Series A funding led by 3one4 Capital”

Founded in 2021 by Xitij Kothi and Gaurav Srivastava, Vidyut offers a battery subscription ownership plan powered by proprietary asset-underwriting algorithms. The company already offers ownership solutions for Mahindra, Piaggio, Altigreen, Murugappa Group’s Montra Electric, Euler Motors, and OSM vehicles. The company’s focus is not just on financing but on elevating the entire EV ownership journey for India’s SMBs, who are the backbone of the economy.Vidyut’s innovative approach combines technology and financial services to serve the EV market, and it aims to build an integrated service for customers. The company is building a data-backed asset underwriting model, which allows it to solve for financing better. Vidyut’s battery subscription ownership plan divides the cost structure for customers, financing the chassis (vehicle minus the battery) through a three to five-year term loan, while the battery is funded through a pay-as-you-use model, with customers paying Rs 1.3-2.5 per km for battery usage. The company manages to extract a high residual value for EVs using battery health data and its proprietary underwriting model. Vidyut’s revenue streams come from both the loan and the battery lease, facilitated through its NBFC partners.With the Indian startup ecosystem seeing an uptick in funding for EV financing-focused startups in the past couple of months, Vidyut is well-positioned to continue its growth and become a major player in the EV financing space. The company’s competitive advantage lies in its ability to remove EV adoption barriers, especially in the large but price-sensitive driver cum owner segment.

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In conclusion, Vidyut’s Series A funding round led by 3one4 Capital and participation from other investors will help the company scale its offerings to the EV ecosystem and expand its presence to 40 Indian cities. The company’s battery subscription ownership plan and proprietary underwriting model have made EV ownership more accessible and affordable for India’s SMBs. With the Indian startup ecosystem seeing an uptick in funding for EV financing-focused startups, Vidyut is well-positioned to continue its growth and become a major player in the EV financing space.