Vidyut, an electric vehicle ecosystem platform, has raised $2.5 million in funding from global fintech investor Flourish Ventures, as announced on Wednesday. This funding will fuel the company’s expansion of its Battery-as-a-Service (BaaS) model, which will now extend to both passenger and commercial electric vehicle segments in India.
Founded in 2021 by former Swiggy and Bounce executives Xitij Kothi and Gaurav Srivastava, Vidyut has now raised a total of $16.5 million from investors such as 3one4 Capital, Credit Saison, Zephyr Peacock, and Lighthouse Canton. Vidyut’sBaaS model separates the cost of the battery from the vehicle purchase, allowing customers to subscribe to battery services on a pay-per-kilometer basis. This innovative approach has helped reduce upfront costs for three-wheeler EVs by 35-40%, according to the company.
“With strong unit economics, a 15% month-on-month growth rate, and long-term partnerships with OEMs, this funding will enable us to scale our financing and lifecycle solutions to new vehicle segments,” said Xitij Kothi, Co-Founder of Vidyut. Kothi also highlighted that the company uses data analysis to address battery degradation risk, a major challenge in EV financing, by predicting battery life and value through real-time performance data.
Harsh Gupta, Principal at Flourish Ventures, noted the importance of finance in climate action, stating, “As the economy transitions to sustainable solutions like electric vehicles, access to credit will be essential for adoption in India. Vidyut’s unique BaaS model offers innovative financial solutions that help reduce upfront costs while addressing concerns around battery life and replacement costs.”
In September 2024, Vidyut made its entry into the passenger vehicle market through a partnership with JSW MG Motor India, launching India’s first BaaS model for four-wheelers and reducing initial vehicle costs by 30%. The company has formed partnerships with major manufacturers such as Tata Motors, Mahindra Last Mile Mobility, Piaggio, and Euler Motors, and its distribution network now spans across 30 cities in India.
Vidyut has also expanded its offerings beyond financing, including EV resale and lifecycle management solutions. In 2023, it introduced a resale platform for three-wheeler commercial vehicles, handling everything from inspection to documentation. This latest round of funding comes as India’s electric vehicle market is experiencing growth, supported by government incentives and policies aimed at increasing EV adoption and reducing carbon emissions in the transportation sector.
