Vimag Labs raises $5 million funding led by Accel

Deeptech startup Vimag Labs has raised $5 million in a funding round led by Accel, with participation from Chakra Growth Fund and Thinkuvate.

The startup plans to use the funds to speed up commercialisation of its patented virtual magnet synchronous motor platform and to expand its engineering and manufacturing capabilities.

“Electric motors are everywhere — electric vehicles (EVs), industrial machines, HVAC systems, and everyday appliances,” Seth, founder and CEO of Vimag Labs, said. He comes with over 20 years of expertise in automotive product development and EV technology.

“The problem is that the most efficient motors today depend on rare earth (metals). Our virtual magnet platform delivers higher efficiency than magnet-based motors, at a cost that is at least neutral and, in the long run, lower for customers,” he added.

“Our motors are largely software-defined. Using advanced electronics and control software, we generate magnetic fields inside the motor electronically. This allows us to get all the benefits of magnet-based motors without the drawbacks,” Seth explained.

Barath Subramanian, partner, Accel, said, “Vimag Labs is creating a fundamentally new electric motor and controls platform as electrification begins to confront real constraints around cost, materials, and supply chain resilience.” He added that the startup’s magnet-free architecture positions the company to redefine how electric drivetrains are designed and scaled.

Founded in 2025 by Manish Seth and Dr Piyush Desai, Vimag Labs is developing a motor technology that matches the efficiency of permanent magnet motors without using rare earth metals, reducing costs, supply-chain risks, and dependence on materials mainly refined in China.

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The startup is initially focusing on two- and three-wheeler EVs, with potential applications in HVAC, refrigeration, and defence.

Its technology is currently undergoing real-world vehicle testing and has reached Technology Readiness Level (TRL) 7. Vimag has also started commercialising parts of its electronics stack and is collaborating with multiple large OEMs in India and abroad.

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