Full-stack EV financing platform Vidyut has raised $2.5 million from Flourish Ventures to expand its Battery-as-a-Service (BaaS) model across both passenger and commercial EV segments.
The fresh funding takes Vidyut’s total capital raised to $16.5 million, backed by 3one4 Capital, Credit Saison, Zephyr Peacock, and Lighthouse Canton, among others.
The company, founded in 2021 by ex-Swiggy and Bounce executives Xitij Kothi and Gaurav Srivastava, offers EV financing, insurance, maintenance, and resale solutions.
Vidyut’s BaaS model reduces upfront EV costs by 65%, making ownership affordable for SMBs and fleet operators. The firm has also secured partnerships with Mahindra, Tata Motors, MG, Piaggio, and hundreds of dealerships to accelerate EV adoption in India.
The latest round of funding comes a year after the company raised $10 million in a Series A round led by 3one4 Capital to scale its new offerings and expand footprint in India.
Other players in the EV financing space in India include Mufin Green Finance, OTO, evfin and Revfin, and Finayo.
“With proven unit economics, strong 15% month-on-month growth, and long-term OEM partnerships, this investment will help us scale our innovative financing and lifecycle solutions across new vehicle segments,” Kothi said.
He added that Vidyut’s BaaS model eliminates one of the biggest hurdles in EV adoption — battery depreciation risk — by leveraging real-time performance data to offer usage-based financing. This aligns EV ownership costs with actual asset performance, a flexibility that traditional financing lacks.
Tesla’s anticipated entry
Vidyut’s funding comes at a time when India’s passenger EV market is evolving, with Tesla reportedly expected to enter via imports. While the global EV giant’s impending entry has hit the stock prices of Tata Motors, Mahindra and Mahindra, and Hyundai Motors, Kothi believes it will boost industry awareness rather than directly challenge Vidyut’s mass-market financing model.
“Tesla will likely target premium consumers, whereas our focus is on affordability and accessibility, particularly for fleet operators and price-sensitive buyers. Regardless of Tesla’s pricing or import policies, cost-effective financing remains key to mass adoption, and that’s where BaaS plays a crucial role,” Kothi told DealStreetAsia.
Beyond financing, Vidyut is tackling India’s emerging EV resale market. It claims that its resale platform has helped commercial EV owners realise 10-15% better prices compared to ICE vehicles, thanks to battery valuation algorithms, growing demand, and OEM-backed warranty recertifications.
Looking ahead, Vidyut plans to strengthen its presence in the passenger EV segment following its partnership with JSW MG Motor India in September 2024 — India’s first BaaS model for four-wheelers, cutting upfront costs by 30%.
Vidyut’s funding is the most recent example of rising investor interest in India’s EV market, with a raft of startups such as BluSmart, Ather Energy, Exponent Energy, Altigreen, Ola Electric, BOLT, and Baaz Bikes raising funds from investors including corporate VCs and automakers.
