Vimag Labs, an Indian startup that aims to reduce reliance on rare earth metals, raises $5 million

Deeptech startup Vimag Labs has raised $5 million in a Series A funding round led by Accel, with participation from Chakra Growth Fund and Thinkuvate.

The startup will use the funds to speed up commercialisation of its patented Virtual Magnet Synchronous motor platform and to expand its engineering and manufacturing capabilities.

Founded in September 2025 by Manish Seth and Dr. Piyush Desai, Vimag Labs develops advanced, magnet-free electric motor and power electronics solutions. The Bengaluru-based startup aims to reduce dependence on rare earth metals by offering high-efficiency electric motors for electric vehicles, industrial machines, HVAC systems, refrigeration, and defence applications.

Vimag Labs has developed a patented Virtual Magnet motor architecture that uses advanced electronics and control software to generate magnetic fields electronically inside the motor.

According to the company, this allows it to deliver the performance of magnet-based motors while avoiding issues related to cost volatility, supply chain risks, and environmental concerns. The motors are largely software-defined and are designed as plug-and-play, drop-in systems for automakers, requiring no major changes to existing manufacturing lines or vehicle platforms.

The startup is currently focusing on commercialisation for two- and three-wheeler electric vehicles, while also working on industrial and defence use cases. Its technology is undergoing real-world vehicle testing and has reached technology readiness level 7.

The startup has already started commercialising parts of its electronics stack and is working with multiple large original equipment manufacturers in India and overseas.

Manish Seth, Founder and CEO of Vimag Labs, said, “This funding validates our conviction that Virtual Magnet motor architecture represents a fundamental shift in how the industry addresses electrification at scale. We are positioned to establish Virtual Magnet technology as the foundational platform for next-generation mobility, industrial, and defense systems.”

Barath Subramanian, Partner at Accel, said, “Vimag Labs is redefining electric drivetrains with their magnet-free architecture and deep integration of power electronics and control software. Their platform addresses real constraints around cost, materials, and supply chain resilience, making it globally relevant as electrification accelerates.”