Vidyut specializing in financing and managing the lifecycle of EVs raises $10 million

Vidyut, a startup specializing in financing and managing the lifecycle of electric vehicles (EVs), has secured $10 million in a Series A funding round.

The round was led by 3one4 Capital, with participation from a mix of new and existing investors, including Saison Capital, Zephyr Peacock, Force Ventures, Alteria Capital, and Udaan CEO Sujeet Kumar. 

The funding is a combination of equity and debt and is crucial for Vidyut as it aims to expand its innovative services within the EV ecosystem.

Planning to broaden offerings

With the fresh capital, Vidyut plans to broaden its offerings beyond EV financing to include insurance, lifecycle management, and resale services. The startup aims to expand its presence to 40 Indian cities and double its team size by the end of the financial year 2024-25, as per the company's statement.  

Its unique approach to financing, which separates the cost of the vehicle chassis from the battery, offers a more affordable and flexible solution for small and medium businesses (SMBs) looking to adopt EVs.

Hybrid financing solution to reduce upfront EV cost

Vidyut introduces a hybrid financing solution that significantly reduces the upfront cost of EVs by up to 50%. Customers can finance the vehicle chassis through a term loan while paying for battery usage on a per-kilometre basis.

The model not only makes EVs more accessible but also addresses concerns about battery longevity and replacement costs.

Partnering with NBFCs and banks

The startup partners with non-banking financial companies (NBFCs) and banks to facilitate the financing of EVs from reputable OEMs, ensuring a seamless and affordable transition to electric mobility for SMBs.

It offers ownership solutions for Mahindra, Piaggio, Altigreen, Murugappa Group’s Montra Electric, Euler Motors and OSM vehicles.

Making EV ownership affordable

Founded in 2021 by Xitij Kothi and Gaurav Srivastava, Vidyut is on a mission to make EV ownership affordable and risk-free. The startup's proprietary asset-underwriting algorithms and data-backed models allow for better financing solutions and high residual value extraction from EVs.

“Electric vehicles pose new underwriting and product structuring challenges to financiers. EVs also meaningfully expand the role of data in the lifecycle of a financing journey and make new lending models possible. Vidyut's model removes EV adoption barriers, especially in the large but price sensitive driver cum owner segment. At 3one4 Capital, we are excited to back the Vidyut team in their mission to simplify EV ownership,” said Sonal Saldanha, Vice President, Investments, 3one4 Capital.

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