Electric vehicle financing startup Vidyut raises $4 million in first round of funding

• Vidyut Tech claims to make commercial EVs affordable and risk-free by offering low interest rates for electric vehicle ownership.
  
• It plans to use the funding to double the headcount in its credit, engineering and sales teams over the next year.
  
• The financing round was co-led by Force enterprises, Veda VCand a group of strategic angels in clean energy space.

Vidyut Tech (VT), an Indian EV financing startup, has raised $4 million in a mix of equity and debt in a round led by Force Ventures, Veda VC and a group of strategic angels in the clean energy space.

Sujeet Kumar (Udaan), Sahil Barua (Delhivery), Kunal Shah (CRED), Sriharsha majesty (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 ownership plans. The startup helps clients get an effective interest rate of just 7% for owning an electric vehicle.

“The biggest consumer need to unlock commercial EV adoption is smart financing. As OEMs push the boundaries of EV technology, the market has lagged behind innovating in finance. The life cycle and ownership trajectory of an electric ride is very different from that of an ICE vehicle,” said Xitij Kothi, co-founder of Vidyut.

The adoption of commercial electric vehicles in the retail market, which consists of individual drivers and small business operators, has been slow due to a laundry list of issues. This includes high initial costs of electric cars, uncertainty about battery life and a non-existent resale market, the company argues.

VT offers two ownership plans: a hybrid vehicle loan financing model with a battery subscription, which is estimated to reduce initial EV costs by 40-50%, and a traditional loan plan.

“To scale big in India, the power is in unlocking the value of small fleet owners and consumers that will ultimately drive adoption,” said Udaan founder and angel investor Sujeet Kumar.

The company stated that it plans to use the funding to scale up offerings to original equipment manufacturers (OEM) partners and regions. It is also aiming to double the headcount of its credit, engineering and sales teams.

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