Vidyut Raises USD 2.5 Million to Expand BaaS Financing Business

The funding will fuel expansion of Vidyut's Battery-as-a-Service offerings in both passenger and commercial EV segments.

February 26, 2025. By Aishwarya

Vidyut has secured USD 2.5 million in funding from global fintech investor Flourish Ventures.

The funding will fuel the expansion of Vidyut's Battery-as-a-Service offerings in both passenger and commercial EV segments. This investment reinforces Vidyut's mission to accelerate India's clean energy transition by making EV ownership accessible and affordable for SMBs.

"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. Vidyut has solved one of EV financing's biggest challenges - battery degradation risk. By analyzing real-time performance data across state of health, discharge patterns, and usage metrics, we accurately predict battery life and value. This data-driven approach enables us to offer usage-based financing that aligns with actual asset performance, making EVs both affordable and financially viable for businesses in a way traditional finance cannot replicate. We're excited to partner with Flourish Ventures to make EVs accessible and profitable for businesses nationwide," said Xitij Kothi, Co-Founder, Vidyut.

Founded in 2021 by ex-Swiggy and Bounce executives Xitij Kothi and Gaurav Srivastava, Vidyut revolutionized commercial EV financing. By unbundling batteries from EVs and offering them on a pay-per-km subscription basis, Vidyut reduced upfront 3W EV costs by 35-40 percent, making them significantly cheaper than ICE vehicles from day one.

"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. With its unique Battery-as-a-Service offering, Vidyut provides innovative financial solutions that help users reduce their upfront costs while addressing common concerns around battery life and replacement costs. We are continually impressed by the team and the growth they have demonstrated, and we look forward to their continued impact in accelerating the transition to climate-friendly solutions,” said Harsh Gupta, Principal, Flourish Ventures.

In 2023, Vidyut expanded its offering to include EV resale and lifecycle management solutions, a move that has seen rapid customer adoption and market traction. In Sep 2024, the company entered the passenger EV market through a partnership with JSW MG Motor India, marking India's first BaaS model for four-wheelers that cuts upfront vehicle costs by 30 percent.

With key industry partners like TATA Motors, JSW MG Motor India, Mahindra Last Mile Mobility, Piaggio, Euler Motors, and a strong distribution network across 30 cities, Vidyut has empowered micro-entrepreneurs and fleet operators to make the sustainable choice, while increasing their earnings by 10-15 percent through EV adoption.

With its data-centric approach, Vidyut has in a short span of time also launched an EV resale platform for the three-wheeler commercial vehicle segment, which manages the entire process—from inspection and valuation to sale and RTO documentation. This new platform has streamlined the resale process for commercial EV owners and has helped customers realise upto 10-15 percent better than ICE counterparts in secondary markets.

Tags:

Sustainable Transport

Electric vehicle market

Electric vehicle adoption

Battery Cells

Battery manufacturer

EV Financing