Vidyut Tech, a Bengaluru-based startup that offers electric vehicle (EV) financing and ownership plans to commercial vehicle fleet owners, has raised $5 million or Rs 40 crore in its Series A round of funding. The round was led by 3one4Capital, with participation from Zephyr Peacock India Fund, Saison Capital, LetsVentures, Angellist, and several prominent angel investors.
Vidyut Tech’s innovative solution for EV adoption
Vidyut Tech was founded in 2021 by Kunal Manchanada, a former executive at Ola Electric, and Ankit Agarwal, a former product manager at Flipkart. The startup aims to solve the challenges of high upfront cost, battery risk, and limited financing options that hinder the adoption of EVs by commercial vehicle owners.
Vidyut Tech’s solution allows customers to buy EVs without owning the battery, which accounts for 40-50% of the vehicle value. The ownership and liability of the battery lies with Vidyut Tech, which also provides battery swapping, charging, and maintenance services. This way, customers can pay less upfront for an EV, even compared to a diesel vehicle, and save on fuel and maintenance costs.
Vidyut Tech has partnered with leading EV makers such as Mahindra, Altigreen, Euler Motors, and OSM vehicles to offer its vehicle ownership plans. The startup claims to have served over 500 customers across 10 cities in India, and aims to reach 10,000 customers by the end of 2024.
Vidyut Tech’s growth plans and vision
The fresh capital from the Series A round will be used by Vidyut Tech to expand its partnerships with more EV makers, enter new geographies, and scale up its technology and operations. The startup will also double its headcount across credit, engineering, and sales functions.
Vidyut Tech’s cofounder and CEO, Kunal Manchanada, said, “We are thrilled to have the support of our investors, who share our vision of accelerating the adoption of EVs in India. We believe that EVs are not only environmentally friendly, but also economically viable for commercial vehicle owners. Our solution takes away the risk and hassle of owning a battery, and enables customers to enjoy the benefits of EVs.”
Pranav Pai, founding partner at 3one4Capital, said, “Vidyut Tech is addressing a huge market opportunity in the EV space, by providing a unique and innovative solution for commercial vehicle financing and lifecycle management. We are impressed by the team’s deep domain expertise, strong execution, and customer-centric approach. We are excited to partner with them in their journey to transform the EV ecosystem in India.”
Vidyut Tech’s Series A round follows its seed round of $4 million in a mix of equity and debt, which was co-led by Force Ventures, Veda VC, and a group of marquee angels, including Sujeet Kumar, Kunal Shah, Sriharsha Majety, and Rajat Verma, in December 2022.
Vidyut Tech competes with other players in the EV financing space, such as Revfin, Finayo, Mufin Green Finance, OTO, evfin, and Hero FinCorp, among others. The EV financing market in India is expected to grow at a CAGR of 32% from 2021 to 2026, according to a report by Research and Markets.
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