Bengaluru-based Vidyut has raised $2.5 million from global fintech investor Flourish Ventures to accelerate its Battery-as-a-Service (BaaS) model in passenger and commercial electric vehicles (EVs) to make EV ownership affordable and risk-free for businesses by reducing the upfront cost of electric vehicles through its innovative pay-per-km model, helping drive India’s transition to clean energy.

Founded in 2021 by Xitij Kothi and Gaurav Srivastava, Vidyut revolutionized EV financing by unbundling batteries from vehicles. This approach allows buyers to subscribe to batteries on a pay-per-km basis, cutting the upfront cost of three-wheeler (3W) EVs by 35-40 percent. As a result, EVs become significantly cheaper than ICE vehicles from day one.

Vidyut has secured over $16.5 million from key investors, including 3one4 Capital, Credit Saison, Zephyr Peacock, and Lighthouse Canton. In February 2023, the startup concluded a $10 million Series A round led by 3one4 Capital.

“With proven unit economics, strong 15 percent 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 of Vidyut.

Vidyut Expanding EV Ecosystem Solutions

Beyond financing, Vidyut has expanded into EV resale and lifecycle management. Its recently launched EV resale platform streamlines the selling process for three-wheeler owners, managing valuation, inspection, and RTO documentation. The Vidyut platform enables customers to earn 10-15 percent higher resale values than their ICE counterparts.

In September 2024, the company entered the passenger EV market by partnering with JSW MG Motor India. This collaboration introduced India’s first BaaS model for four-wheelers, reducing upfront costs by 30 percent.

Vidyut’s strong industry network includes TATA Motors, Mahindra Last Mile Mobility, Piaggio, Euler Motors, and JSW MG Motor India. With a presence in 30 cities, the company helps micro-entrepreneurs and fleet operators adopt sustainable transportation while increasing their earnings by 10-15 percent.

As demand for EV financing solutions grows, Vidyut competes with Revfin, Finayo, Mufin Green Finance, OTO, Evfin, and Hero FinCorp. With its innovative Battery-as-a-Service model and strong investor backing, Vidyut aims to reshape India’s EV ownership landscape, making electric mobility more accessible.

“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 in adoption in India,” said Harsh Gupta, Principal Flourish Ventures.

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