Vidyut raises $2.5 million to expand battery-as-a-service financing business

Vidyut, a full-stack electric vehicle ecosystem platform based out of Bengaluru, has raised $2.5 million (₹21 crore approximately) 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.

“With proven unit economics, strong 15% 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, Vidyut.

“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.”

Unique offering

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

‘By analysing real-time performance data across state of health, discharge patterns, and usage metrics, we accurately predict battery life and value,’ says Xitij Kothi, co-founder, Vidyut. | Photo Credit: file photo

“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.

“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.”

In 2023, Vidyut expanded its offering to include EV resale and lifecycle management solutions. In September 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%.

With key industry partners like TATA Motors, JSW MG Motor India, Mahindra Last Mile Mobility, Piaggio, Euler Motors, and a distribution network across 30 cities, Vidyut has also helped micro-entrepreneurs and fleet operators increase their earnings by 10-15% through EV adoption. 

Resale platform

The start-up 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% better than ICE counterparts in secondary markets.

To date, Vidyut has raised $16.5 million (around ₹143 crore) in capital from investors including 3one4 Capital Saison Capital, Zephyr Peacock, and Flourish Ventures.