Vidyut, an electric vehicle (EV) financing startup, has raised $10 million in its Series A round of funding, led by 3one4 Capital. The company plans to use the funds to expand its presence to 40 cities and offer a full-stack ecosystem for EV owners, including insurance, resale, servicing and maintenance.
Vidyut was founded in 2021 by Gaurav Srivastava and Xitij Kothi, with a vision to accelerate EV adoption in India by providing affordable and convenient financing and ownership solutions. The startup mainly caters to electric three-wheeled vehicle fleet owners, who are mostly small and micro businesses. Vidyut partners with leading EV manufacturers such as Mahindra, Piaggio, Altigreen, Montra Electric, Euler Motors and Omega Seiki Mobility.
According to Srivastava, Vidyut’s focus is not just on financing but on elevating the entire EV ownership journey for India’s SMBs, who are the backbone of the economy. He said that the company is working to bridge the gap between EV and ICE (internal combustion engine) vehicles in terms of servicing and maintenance options, which are currently limited and complicated for EVs.
Kothi added that Vidyut is also looking to build a resale ecosystem for electric three-wheeled vehicles, which will help reduce the risk of owning the battery, the most crucial part of an EV. He said that the company is running pilot projects for vehicle insurance and resale, and will soon start pilots for EV servicing and maintenance.
The Series A round also saw participation from new and existing investors such as Saison Capital, Zephyr Peacock, Force Ventures, Alteria Capital and Udaan’s CEO Sujeet Kumar. The round was a mix of equity and debt funding, but the company did not disclose the valuation or the exact ratio.
Sonal Saldanha, Vice President of Investments at 3one4 Capital, said that Vidyut’s model removes EV adoption barriers, especially in the large but price sensitive driver cum owner segment. She said that 3one4 Capital is excited to back the Vidyut team in their mission to simplify EV ownership.
Dhairen Tohliani, Vice President at Alteria Capital, said that after hitting an inflection point, customized financing and lifecycle management solutions will play a central role in large scale EV adoption, requiring lenders to evaluate asset risk alongside borrower risk.
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