Electric vehicle ecosystem platform Vidyut has secured $2.5 million in funding from global fintech investor Flourish Ventures, the company announced Wednesday. The investment will support Vidyut's expansion of its Battery-as-a-Service (BaaS) model across both passenger and commercial electric vehicle segments in India.
Founded in 2021 by former Swiggy and Bounce executives Xitij Kothi and Gaurav Srivastava, Vidyut has now raised a total of $16.5 million from investors including 3one4 Capital, Credit Saison, Zephyr Peacock, and Lighthouse Canton.
The company's BaaS model separates battery costs from vehicle purchases, allowing customers to subscribe to battery services on a pay-per-kilometer basis. This approach has reduced upfront costs for three-wheeler EVs by 35-40%, according to the company.
"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," said Xitij Kothi, Co-Founder of Vidyut.
Kothi explained that the company addresses battery degradation risk, one of the key challenges in EV financing, through data analysis. "By analyzing real-time performance data across state of health, discharge patterns, and usage metrics, we accurately predict battery life and value," he said.
Harsh Gupta, Principal at Flourish Ventures, emphasized the role of finance in climate action. "As the economy transitions to sustainable solutions like electric vehicles, access to credit will play a key role to adoption in India," Gupta said. "With its unique Battery-as-a-Service offering, Vidyut provides innovative financial solutions that help users reduce their upfront costs while addressing common concerns around battery life and replacement costs."
In September 2024, Vidyut expanded into the passenger vehicle market through a partnership with JSW MG Motor India. This move introduced India's first BaaS model for four-wheelers, cutting initial vehicle costs by 30%.
The company has established partnerships with major manufacturers including Tata Motors, Mahindra Last Mile Mobility, Piaggio, and Euler Motors. Its distribution network now spans 30 cities across India.
Beyond financing, Vidyut has diversified its offerings to include EV resale and lifecycle management solutions. In 2023, it launched a resale platform for three-wheeler commercial vehicles that handles the entire process from inspection to documentation.
The latest funding comes as India's electric vehicle market continues to grow, with the government pushing for increased EV adoption through various incentives and policies aimed at reducing carbon emissions in the transportation sector.