Vidyut, a startup specializing in financing and managing the lifecycle of electric vehicles (EVs), has successfully secured $10 million in a Series A funding round.

Leading this round is 3one4 Capital, with a mix of new and existing investors also participating, including Saison Capital, Zephyr Peacock, Force Ventures, Alteria Capital, and Udaan CEO Sujeet Kumar.

The funding, comprising both equity and debt components, plays a pivotal role for Vidyut as it charts an ambitious course to expand its innovative services within the EV ecosystem.

Armed with this fresh capital infusion, Vidyut sets its sights on diversifying its offerings beyond EV financing, branching out into insurance, lifecycle management, and resale services. The startup aims to bolster its presence across 40 Indian cities and double its team size by the close of the financial year 2024-25, according to the company’s statement.

Vidyut’s distinctive financing approach, which decouples the vehicle chassis cost from the battery, presents a more accessible and flexible solution for small and medium businesses (SMBs) venturing into EV adoption.

Introducing a hybrid financing model, Vidyut significantly slashes the upfront costs of EVs by up to 50%. Customers can finance the vehicle chassis through term loans while paying for battery usage on a per-kilometre basis.

This model not only democratizes EV access but also addresses concerns surrounding battery longevity and replacement expenses.

In partnership with non-banking financial companies (NBFCs) and banks, Vidyut facilitates EV financing from reputable OEMs, ensuring a seamless and economical transition to electric mobility for SMBs.

The startup offers ownership solutions for vehicles from Mahindra, Piaggio, Altigreen, Murugappa Group’s Montra Electric, Euler Motors, and OSM.

Founded in 2021 by Xitij Kothi and Gaurav Srivastava, Vidyut is driven by a mission to render EV ownership affordable and risk-free. Leveraging proprietary asset-underwriting algorithms and data-backed models, the startup delivers superior financing solutions and extracts high residual value from EVs.

Commenting on the investment, Sonal Saldanha, Vice President, Investments, 3one4 Capital, expressed enthusiasm for Vidyut’s mission to simplify EV ownership. She highlighted the unique challenges EVs pose to financiers and commended Vidyut’s role in removing adoption barriers, particularly within the price-sensitive driver cum owner segment.