EV financing startup Vidyut raises $2.5 mn to expand its BaaS offerings

Electric vehicle financing startup Vidyut on Wednesday announced that it has raised $2.5 million from US-based fintech investor Flourish Ventures. The funding will be used to expand its Battery-as-a-Service financing business in passenger and commercial EV segments.

Vidyut unbundles batteries from EVs and offers them on a pay-per-km subscription basis. Through this, the startup claims to have reduced the upfront cost of electric three-wheelers by 35-40%, making them significantly cheaper than ICE vehicles.

“This investment reinforces Vidyut's mission to accelerate India's clean energy transition by making EV ownership accessible and affordable for SMBs (small and medium-sized businesses),” the company said in a statement.

"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, Vidyut.

Vidyut offers full-stack financing, insurance, maintenance, resale and lifecycle management solutions for electric vehicles.

"We at Flourish Ventures believe that finance will have a key role in enabling actions towards climate change,” said Harsh Gupta, principal, Flourish Ventures.

“We are continually impressed by the (Vidyut) team and the growth they have demonstrated, and we look forward to their continued impact in accelerating the transition to climate-friendly solutions,” Gupta added.

The company has so far raised over $16.5 Mn from 3one4 Capital, Credit Saison, Flourish Ventures, Zephyr Peacock, Lighthouse Canton and other investors.

In 2023, it expanded its offering to include EV resale and lifecycle management solutions. The company entered the passenger EV market in partnership with JSW MG Motor India in September 2024. According to the company, this marked India's first BaaS model for four-wheelers that cuts upfront vehicle costs by 30%.

According to the company, it has partnered with leading auto manufacturers including Mahindra, Tata Motors, MG, and Piaggio. The company has a distribution network across 30 cities.