EV financing startup Vidyut raises $4 million in seed funding
Vidyut Tech (VT), an Indian startup for EV financing has raised $4 million in a mix of equity and debt in a round co-led by Force Ventures, Veda VC, and a clutch of strategic angels in the clean energy space.
Sujeet Kumar (Udaan), Sahil Barua (Delhivery), Kunal Shah (CRED), Sriharsha Majety (Swiggy), and Rajat Verma (Lohum) also participated in the round.
Founded in 2021 by IIT graduates Gaurav Srivastava and Xitij Kothi, Vidyut claims to make commercial EV ownership affordable and risk-free through its ownership plans. The startup helps customers to get an effective interest rate of as low as 7% for owning an electric vehicle.
“The biggest consumer need to unlock commercial EV adoption is smart financing. While OEMs are pushing the frontiers of EV tech, the market has lagged in innovating on the financing front. The lifecycle and the ownership journey of an electric ride are very different from those of an ICE vehicle,” said Vidyut co-founder Xitij Kothi.
The adoption of commercial electric vehicles in the retail market, which comprises individual drivers and small business operators, has been slow because of a litany of problems. This includes high upfront cost of EVs, uncertainty over battery life and a non-existent resale market, the company states.
VT offers two ownership plans: a hybrid financing model of a vehicle loan with a battery subscription, which is estimated to bring down the upfront EV cost by 40-50%, and a traditional term loan plan.
“To scale big in India, the power lies in unlocking the value from small fleet owners and consumers who will ultimately drive the adoption,” Udaan founder and angel investor Sujeet Kumar said.
The company stated that it plans to use the funding to scale up the offering across original equipment manufacturers (OEM) partners and geographies. It also aims to double the headcount of its credit, engineering, and sales teams.
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