Vidyut, a startup specializing in financing and managing the lifecycle of electric vehicles (EVs), has secured $10 million in a Series A funding round. Led by 3one4 Capital, the round saw participation from a mix of new and existing investors, including Saison Capital, Zephyr Peacock, Force Ventures, Alteria Capital, and Udaan CEO Sujeet Kumar. The funding, which includes a combination of equity and debt, is crucial for Vidyut as it aims to expand its innovative services within the EV ecosystem.
With the fresh capital, Vidyut plans to broaden its offerings beyond EV financing to include insurance, lifecycle management, and resale services. The startup aims to expand its presence to 40 Indian cities and double its team size by the end of the financial year 2024-25.
Vidyut’s unique approach to financing separates the cost of the vehicle chassis from the battery, offering a more affordable and flexible solution for small and medium businesses (SMBs) looking to adopt EVs. The startup introduces a hybrid financing solution that significantly reduces the upfront cost of EVs by up to 50%, allowing customers to finance the vehicle chassis through a term loan while paying for battery usage on a per-kilometre basis. This model not only makes EVs more accessible but also addresses concerns about battery longevity and replacement costs.
Vidyut partners with non-banking financial companies (NBFCs) and banks to facilitate the financing of EVs from reputable OEMs, ensuring a seamless and affordable transition to electric mobility for SMBs. The startup offers ownership solutions for Mahindra, Piaggio, Altigreen, Murugappa Group’s Montra Electric, Euler Motors, and OSM vehicles.
Founded in 2021 by Xitij Kothi and Gaurav Srivastava, Vidyut is on a mission to make EV ownership affordable and risk-free. The startup’s proprietary asset-underwriting algorithms and data-backed models allow for better financing solutions and high residual value extraction from EVs.
Sonal Saldanha, Vice President, Investments, 3one4 Capital, expressed excitement about backing Vidyut, stating, “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.”
