Vidyut, a full-stack EV ecosystem platform, has secured USD 2.5 million in funding from Flourish Ventures to expand its Battery-as-a-Service (BaaS) financing business. This investment will support Vidyut's growth in both passenger and commercial EV sectors, furthering its goal of making EVs more accessible and affordable in India.

The investment follows Vidyut's successful entry into the passenger EV market in September 2024 through a partnership with JSW MG Motor India. This partnership marked India's first BaaS model for four-wheelers.

Vidyut, founded in 2021, uses real-time data analysis to predict battery life and value, enabling usage-based financing. This approach addresses battery degradation concerns and makes EVs financially viable for businesses.

Vidyut has partnered with major automotive companies and operates across 30 cities in India. The company has also expanded into EV resale and lifecycle management.

Addressing major challenges

Vidyut's financing model addresses a major challenge in EV adoption: battery degradation risk. The company leverages real-time performance data to accurately predict battery life and value. This allows them to offer usage-based financing that aligns with actual asset performance.

"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's BaaS offering reduces upfront 3W EV costs by 35-40%, making them cheaper than ICE vehicles from the outset. This approach has driven significant growth and market traction for the company.

Harsh Gupta, Principal, Flourish Ventures, said, "We at Flourish Ventures believe that finance will have a key role in enabling actions towards climate change. As the economy transitions to sustainable solutions like electric vehicles, access to credit will play a key role to adoption in India.”

Collaboration with key players

Vidyut collaborates with key industry players like TATA Motors, JSW MG Motor India, Mahindra Last Mile Mobility, Piaggio, and Euler Motors. These partnerships and widespread presence have enabled Vidyut to empower micro-entrepreneurs and fleet operators to transition to sustainable EVs, while increasing their earnings by 10-15%, the company said.

To date, Vidyut has raised a total of USD 16.5 million in funding. This includes investments from 3one4 Capital, Saison Capital, Zephyr Peacock, and Flourish Ventures.