This is a major boost for India’s growing electric vehicle (EV) industry. Vidyut, a path-breaking full-stack EV financing company, has raised $2.5 million from Flourish Ventures. The strategic funding will advance Vidyut’s revolutionary Battery-as-a-Service (BaaS) model.
Revolutionising the EV Space with BaaS
Vidyut’s BaaS solution is a disruptor in EV financing. Providing batteries on a pay-per-kilometre subscription plan. It greatly decreases the initial cost of buying electric vehicles. This model has worked well in the commercial segment. It has priced three-wheeler EVs lower than their ICE versions by cutting costs by 35-40%. In September 2024, Vidyut deepened its BaaS model into the passenger EV segment via a strategic alliance with JSW MG Motor India, bringing down the upfront price of four-wheel EVs by 30%.
Vidyut: Data-Driven Financing for Sustainable Growth
Underlying Vidyut’s success is its data-based strategy for financing. Vidyut uses real-time performance information to forecast battery life and worth, which enables usage-based funding based on actual asset performance. This new approach both avoids the risk of battery depreciation and offers companies a financially sound solution for transitioning to electric vehicles.
Xitij Kothi, Co-Founder at Vidyut, revealed his plans for the company’s future. “With demonstrated unit economics, 15% month-over-month growth, and long-term OEM alliances. This funding will enable us to expand our innovative financing and lifecycle solutions across new vehicle classes. We have cracked one of the EV financing industry’s biggest pain points through analysis of real-time performance data.”
Industry Reacts on Raising Funds by Vidyut
Vidyut has formed strong ties with prominent OEMs like Tata Motors, Mahindra Last Mile Mobility, Piaggio, and Euler Motors. Its innovative solution has found significant popularity, especially among the commercial sector, where the company has achieved considerable growth. This recent funding round takes Vidyut’s raised capital to more than $16.5 million. As it continues its robust growth trajectory, Vidyut looks to double its assets under management (AUM) in the following financial year.
ELCTRIK Speaks
As India presses forward with its vision of sustainable mobility, Vidyut’s BaaS model is a game-changing innovation. In making electric vehicles more affordable and accessible, Vidyut is not only paving the way to a greener world but also enabling businesses to shift towards greener solutions. With its strong partnerships and data-driven financing practices, Vidyut is positioned to be a game-changer in shaping India’s electric vehicle future.
