Vidyut partners with JSW MG Motor India to offer a unique ownership program for electric cars

Bengaluru-based full-stack EV ecosystem startup Vidyut (VT) has expanded its Battery-as-a-Service (BaaS) portfolio to the passenger car segment.

The startup has partnered with JSW and MG Motor India to introduce a Battery-as-a-Service (BaaS) financing option for passenger cars, including the MG Comet EV, MG Windsor EV, and MG ZS EV.

“People think of battery as an asset, but we think battery as a fuel. So why should you pay for it when the vehicle is not on the road? This very question inspired us to introduce Battery-as-a-Service (BaaS) into the EV ecosystem," said Xitij Kothi, Co-Founder of Vidyut.

Enabling customers to rent the battery

Under the BaaS program, customers can rent the battery with a minimum fee starting at Rs 2.5 per kilometer, based on usage.

The initiative allows EV owners to rent batteries, significantly reducing running costs by up to 40% compared to traditional internal combustion engine (ICE) vehicles.

"Since its inception in 2021, Vidyut has made significant strides in pioneering this financing model for commercial applications. And now we are excited to extend that same level of innovation to personal four-wheeler vehicles with JSW MG Motor India," Kothi said.

"Our goal is to make EV ownership not just accessible but also cost-efficient for everyone, empowering individuals to embrace sustainable mobility without the financial burden that traditionally accompanies it," Kothi added.

What is the BaaS model?

Unlike traditional ICE vehicles, which incur ongoing fuel costs, the Battery-as-a-Service (BaaS) model allows customers to pay solely for the vehicle (Minus Battery), significantly reducing the initial acquisition cost of the EV. This model cuts driving expenses and makes EV ownership more affordable and hassle-free. 

Post the completion of the financing tenure of the vehicle (Minus Battery) after 3-5 years depending on the vehicle model, Vidyut will offer customers the option to either continue with the battery rental program or purchase the battery outright. Additionally, vehicle owners can opt out of the program at any time by paying the residual value of the battery.

“As a young startup, we appreciate Vidyut’s approach towards this unique and industry-first ownership program to make passenger EVs more accessible and further boost EV adoption in India. And we are delighted to partner with Vidyut, as one of our financing partners, to introduce BaaS, to address the barrier of incremental upfront cost of owning an EV and reducing the overall running cost significantly," said Gaurav Gupta, Chief Growth Officer, JSW MG Motor India.

"With this innovative program, we are confident that this model will incentivize more potential EV buyers enabling them to upgrade to an EV lifestyle. Additionally, MG EV customers can also avail the assured 60% buyback value after three years of ownership, reassuring a seamless and confident ownership experience," Gupta added.

What does Vidyut do?

Founded in 2021, Vidyut makes commercial EV ownership simple, affordable, and risk-free. The startup claims that its unique asset-underwriting algorithms and battery health data analysis have enabled it to offer affordable financing through its one-of-a-kind unique battery subscription financing model, making EVs more accessible to a wider market. 

It aims to support customers throughout their entire EV ownership journey by providing end- to-end solutions.

Recently, Vidyut also forayed into the sale and financing of Used EVs to support the resale of 3-wheeler commercial EVs in Delhi NCR, Bengaluru, and Hyderabad. 

Vidyut's market presence

The startup currently operates in 30+ cities in India with OEM partners such as Tata Motors, Mahindra, Euler Motors, Piaggio, Greaves, Murugappa Group's Montra Electric, and Altigreen.

So far, it has raised a total of $14 million, led by 3one4 Capital, with participation from new and existing investors, namely Saison Capital, Zephyr Peacock, Force Ventures, a venture debt fund Alteria Capital, and Udaan’s co-founder, Sujeet Kumar.