[Funding alert] EV Startup Vidyut Raises $10Mn in Series A Led by 3one4 Capital

Vidyut (VT), a full-stack EV ecosystem startup, has raised $10 million in its Series A fundraise, led by 3one4 Capital. The round also witnessed participation from new and existing investors namely, Saison Capital, Zephyr Peacock, Force Ventures, a venture debt fund Alteria Capital and CEO of Udaan, Sujeet Kumar. The Series A round is a mix of equity and debt funding.

Vidyut will now offer EV insurance, Lifecycle Management, and EV resale, 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.

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“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.

With this funding, Vidyut has achieved a major milestone that demonstrates its dedication to enhancing SMB EV ownership and supporting India’s shift to renewable energy. With the additional funding, the business plans to expand its services to include the EV ecosystem.

“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.

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The company’s differentiation lies in its one-of-a-kind 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 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

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“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

About Vidyut

Vidyut, which was founded in 2021, has led the way in lowering the barriers to, and simplifying the ownership of, commercial electric vehicles. A larger market can now purchase EVs thanks to the company’s unique battery subscription finance strategy, which offers reasonable financing thanks to its unique asset-underwriting algorithms and battery health data analysis.