Vidyut, an electric vehicle (EV) ecosystem platform, has secured $2.5 million in funding from Flourish Ventures, a global fintech investor. This new investment will help the company grow its Battery-as-a-Service (BaaS) model, which is set to expand to both passenger and commercial EV segments in India.
Founded in 2021 by former Swiggy and Bounce executives Xitij Kothi and Gaurav Srivastava, Vidyut has raised a total of $16.5 million from investors such as 3one4 Capital, Credit Saison, Zephyr Peacock, and Lighthouse Canton. The company’s BaaS model separates the cost of the battery from the vehicle purchase, allowing customers to pay for battery services based on the kilometers driven. This approach has helped reduce the upfront cost of three-wheeled EVs by 35-40%, according to Vidyut.
Xitij Kothi, Vidyut’s co-founder, shared that the company’s strong unit economics, monthly growth of 15%, and partnerships with original equipment manufacturers (OEMs) would help Vidyut expand its financing and lifecycle solutions to new vehicle segments. He also mentioned that Vidyut is addressing the challenge of battery degradation, a common issue in EV financing, by using data analytics to predict battery life and performance.
Harsh Gupta, Head of Flourish Ventures, highlighted the importance of financing in the adoption of EVs, saying, “As the economy shifts to more sustainable solutions like EVs, access to credit is essential for adoption in India. Vidyut’s unique BaaS model offers financial solutions that lower upfront costs while addressing concerns about battery life and replacement.”
In September 2024, Vidyut expanded into the passenger vehicle market through a partnership with JSW MG Motor India. The collaboration introduced India’s first four-wheeler BaaS model, which lowered initial vehicle costs by 30%. Vidyut has also partnered with major manufacturers like Tata Motors, Mahindra Last Mile Mobility, Piaggio, and Euler Motors, and its distribution network now spans 30 cities in India.
The company has further broadened its offerings to include electric vehicle resale and lifecycle management solutions. In 2023, Vidyut launched a resale platform for three-wheeled commercial vehicles, handling tasks such as inspections and documentation. The latest funding comes as India’s EV market experiences growth, driven by government incentives and policies aimed at boosting EV adoption and reducing carbon emissions in the transportation sector.
