EV Startup Vidyut Secures $10M funding from 3one4 Capital

Vidyut, an electric vehicle (EV) financing and ecosystem startup, has announced that it has raised $10 million in its Series A funding round led by venture capital firm 3one4 Capital. The round also saw participation from new and existing investors, including Saison Capital, Zephyr Peacock, Force Ventures, Alteria Capital, and Udaan co-founder Sujeet Kumar. The Series A round is a mix of equity and debt funding.

Founded in 2021 by Gaurav Srivastava and Xitij Kothi, Vidyut is an EV tailored platform that offers end-to-end solutions for purchase, financing and resale to the customers. The startup offers a battery subscription ownership plan powered by proprietary asset-underwriting algorithms. The company mainly caters to electric three-wheeled vehicle fleet owners for both passenger and cargo usage. It currently partners with vehicle manufacturers like Mahindra & Mahindra, Piaggio, Altigreen, Montra Electric, Euler Motors and Omega Seiki Mobility.

The startup plans to use the fresh capital to scale its offerings to the EV ecosystem. Vidyut will now offer EV insurance, lifecycle management, and EV resale, with an aim to simplify the entire EV ownership experience. It is also looking to expand its presence to 40 Indian cities. The company will be doubling its team size by the end of financial year 25 as it prepares to build a full-stack EV ecosystem.

“Our focus is not just on financing but on elevating the entire EV ownership journey for India’s SMBs,” said Gaurav Srivastava, co-founder of Vidyut.

Sonal Saldanha, Vice President, Investments, 3one4 Capital said Vidyut’s model removes EV adoption barriers, especially in the large but price-sensitive driver cum owner segment.

“The adoption of EV is inevitable and this is creating a massive need for redefining the overall EV ownership experience,” said Visa Kannan, Partner, Saison Capital.

Vidyut is one of the emerging players in the fast-growing EV sector in India, which is expected to witness a compound annual growth rate (CAGR) of 44% between 2020 and 2027, according to a report by ResearchAndMarkets.com. The government’s push for clean energy and the lower total cost of ownership of EVs compared to internal combustion engine vehicles are some of the key drivers for the sector.

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