Vidyut’s BAAS ambitions get $2.5 million boost
The funding will enhance the Bengaluru-based start-up’s battery-as-a-service (BAAS) offerings in both passenger and commercial EV segments.
Electric mobility player Vidyut has raised USD 2.5 million in funding from global fintech investor Flourish Ventures.
The funding will boost the Bengaluru-based start-up’s battery-as-a-service (BAAS) offerings in both passenger and commercial EV segments, Vidyut said in a statement.
“This investment will help us scale our innovative financing and lifecycle solutions across new vehicle segments,” Vidyut Co-Founder Xitij Kothi said. “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.”
He said the company has been able to solve one of EV financing’s biggest challenges, which is battery degradation risk by analyzing real-time performance data across state of health, discharge patterns, and usage metrics and thus accurately predict battery life and value, according to a report by news agency PTI.
“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,” Flourish Ventures Principal Harsh Gupta said.
“At Flourish Ventures, we believe financial innovation is key to driving climate action. Vidyut’s Battery-as-a-Service (BaaS) model is a breakthrough in EV financing,” Flourish Ventures said in a blog post. “By separating the cost of the battery from the vehicle, Vidyut makes EV ownership more affordable and reduces risk for both buyers and lenders.”
In 2023, Vidyut introduced an EV resale platform for commercial three-wheelers, streamlining the valuation and sale process. In September 2024, it expanded into the passenger EV segment through a partnership with JSW MG Motor India, launching a BaaS model for four-wheelers.
Vidyut has partnerships with players like Tata Motors, Piaggio, Mahindra and Euler Motors and operates in 30 Indian cities. So far, the company has raised USD 16.5 million from investors such as 3one4 Capital, Credit Saison, Zephyr Peacock and Lighthouse Canton.
The Indian EV market has been on a steady upward trajectory, with annual sales growing at a CAGR of approximately 100% from FY15 to FY24. Despite a temporary dip during the COVID-19 pandemic, the market has rebounded strongly, with sales reaching 1.7 million units in FY24, the Flourish Ventures blog post says.