Vidyut Secures Funding to Transform Electric Vehicle Ecosystem

Vidyut, a full-stack electric vehicle ecosystem platform, has successfully secured $2.5 million in funding from Flourish Ventures, a global fintech investor. Overall, Vidyut’s total funding has exceeded $16.5 million, gathering support from prominent investors such as 3one4 Capital, Credit Saison, Zephyr Peacock, Lighthouse Canton, and others. The company had previously wrapped up a $10 million Series A funding round in February of the previous year.

This new investment will propel the growth of Vidyut’s battery-as-a-service (BaaS) solutions across both passenger and commercial electric vehicle segments. The funds will significantly contribute to Vidyut’s goal of expediting India’s transition to clean energy, making electric vehicle ownership more affordable and accessible, especially for small and medium-sized businesses, as stated in the company’s press release.

Innovative Financing Solutions for Electric Vehicles

Founded in 2021 by former Swiggy and Bounce executives Xitij Kothi and Gaurav Srivastava, Vidyut is revolutionising the financing of commercial electric vehicles. By separating batteries from vehicles and offering them on a pay-per-km subscription basis, the company has decreased the initial costs of three-wheeler electric vehicles (3W EVs) by 35-40%, making them much cheaper than internal combustion engine vehicles from the outset.

Expansion of Product Offerings

In 2023, Vidyut broadened its range of services by introducing electric vehicle resale and lifecycle management solutions. This strategic move has resulted in swift customer adoption and increasing market presence. In September 2024, the firm entered the passenger electric vehicle market by teaming up with JSW MG Motor India, introducing India’s first BaaS model for four-wheelers, which reduces upfront vehicle costs by 30%.

Strong Industry Partnerships and Market Reach

Vidyut collaborates with key industry players such as TATA Motors, JSW, MG Motor India, Mahindra Last Mile Mobility, Piaggio, and Euler Motors, and maintains a robust distribution network that spans 30 cities. This collaboration facilitates micro-entrepreneurs and fleet operators in adopting sustainable practices while increasing their earnings by 10-15% through the adoption of electric vehicles.

Growth and Future Outlook

With proven unit economics and a noteworthy monthly growth rate of 15%, coupled with long-term partnerships with original equipment manufacturers (OEMs), Xitij Kothi expressed confidence that this investment will enable scaling of their innovative financing and lifecycle solutions across additional vehicle segments.

Additionally, the Bengaluru-based company has introduced an electric vehicle resale platform tailored for the three-wheeler commercial vehicle sector, managing the entirety of the resale process—from inspection and valuation to sale and RTO documentation. The platform is designed to enhance the resale experience for commercial electric vehicle owners, helping customers achieve returns that are 10-15% higher than those realised with internal combustion engine vehicles in secondary markets.

In the competitive landscape of electric vehicle financing, Vidyut faces competition from several companies including Revfin, Finayo, Mufin Green Finance, OTO, Evfin, and Hero FinCorp.