Vidyut, a startup that provides financing and ownership solutions for electric vehicle (EV) fleet owners, has raised $10 million in a mix of debt and equity in its Series A round. The funding was led by 3one4 Capital, a venture capital firm that focuses on early-stage technology startups. Other investors who participated in the round include Saison Capital, Zephyr Peacock, Force Ventures, Alteria Capital, and Sujeet Kumar, the CEO of Udaan, an online B2B marketplace.
How Vidyut helps EV fleet owners reduce ownership costs
Vidyut, which was founded in 2021 by Xijith Kothi and Prashant Kumar, aims to solve the challenges faced by EV fleet owners, such as high upfront costs, limited financing options, and lack of after-sales support. The startup offers a platform that enables EV fleet owners to access affordable and flexible financing, insurance, servicing, maintenance, and resale solutions for their vehicles.
Vidyut has partnered with several non-banking financial companies (NBFCs) and EV manufacturers to offer customized financing plans for EV fleet owners. The startup also leverages data and analytics to underwrite the assets and optimize the repayment schedules. Vidyut claims that its platform can help EV fleet owners save up to 40% on their total cost of ownership.
Vidyut’s plans to scale up and enter new segments
Vidyut plans to use the new funds to scale up its operations and expand its offerings to the EV ecosystem. The startup currently operates in six cities across India and has over 2,000 EVs on its platform. Vidyut aims to reach 10,000 EVs by the end of 2024 and enter new segments such as two-wheelers and four-wheelers.
Vidyut also plans to launch new services for EV fleet owners, such as EV insurance, lifecycle management, and EV resale. The startup is currently running pilot projects for these services and will soon roll them out to its customers. Vidyut’s co-founder Xijith Kothi said, “We aim to build an integrated service for customers. We are building a data-backed asset underwriting model, which allows us to solve for financing better. We had been working on adding more customers as well as NBFC partners.”
Why Vidyut’s funding is significant for the EV sector in India
Vidyut’s funding comes at a time when the EV sector in India is witnessing a surge in demand and investment. According to a report by Avendus Capital, the EV market in India is expected to grow at a compound annual growth rate (CAGR) of 36% and reach $206 billion by 2030. The report also estimates that EVs will account for 35% of the total vehicle sales in India by 2030.
However, the EV sector in India also faces several challenges, such as high upfront costs, limited financing options, inadequate charging infrastructure, and low consumer awareness. Vidyut’s platform addresses some of these challenges by providing EV fleet owners with affordable and convenient financing and ownership solutions. Vidyut’s funding also reflects the growing interest of investors in the EV sector, especially in startups that offer innovative solutions for the EV ecosystem.
Pranav Pai, the founding partner of 3one4 Capital, said, “Vidyut is building a full-stack platform for the EV ecosystem that leverages data and technology to provide financing and ownership solutions for EV fleet owners. We are excited to partner with Vidyut and support their vision of accelerating the adoption of EVs in India.”
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