Vidyut Tech, an EV startup that helps significantly reduce ownership costs for individual small commercial EV owners, has landed $10Mn in a Series A round. The round was led by 3one4 Capital, with participation from Saison Capital, Zephyr Peacock, Force Ventures, venture debt fund Alteria Capital and CEO of Udaan, Sujeet Kumar. The Series A round is a mix of equity and debt funding.
EVs, though accelerating in adoption across India, still majorly consist of smaller-sized commercial vehicles in the country. And since these vehicles are mostly owned by individuals, the cost of ownership acts as a financial stress considering the income generated from plying these EVs. Vidyut has hence adopted a unique EV financing model, wherein the buyer essentially only owns the vehicle, while renting the battery as per use. Battery costs are roughly 30-40% of the overall vehicle cost, and Vidyut’s solution hence makes ownership much more affordable.
“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 are 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, one of the co-founders at Vidyut.
Founded in 2021, Vidyut says that its unique asset-underwriting algorithms and battery health data analysis have enabled it to offer affordable financing through its one-of-a-kind unique battery subscription financing model, making EVs more accessible to a wider market. And it seems the company is getting sizeable traction for its model, having already onboarded some of India’s largest small commercial EV makers such as Mahindra, Piaggio, Altigreen, Murugappa Group’s Montra Electric, Euler Motors and OSM vehicles.
This debt-equity Series A will now be used by Vidyut to offer full-stack EV financing solutions. It plans to now offer EV insurance, Lifecycle Management, and EV resale, with an aim to simplify the entire EV ownership experience. It is also looking to expand its presence to 40 Indian cities. The company will be doubling its team size by the end of FY-25 as it prepares to build a full stack EV ecosystem.
