SUMMARY
The startup claims to have a current production capacity of 60,000 units per year
Vegh aims to scale up its operations to three times the current capacity
In the first phase of its expansion strategy, Vegh aims to penetrate to 12 states
Electric vehicle (EV) startup Vegh has bagged $5 Mn funding in a Pre-Series round led by an undisclosed investor. According to the startup, this is a significant milestone in its ongoing $50 Mn Pre-Series fundraising round.
Founded in 2021 by Sumeet Gupta, Pragya Goyal, Kamalchand Bothra, Ashkaran Bothra and Namrata Gupta, Vegh has a manufacturing unit in Punjab which also serves as its research and development hub and has a production capacity of 60,000 units per year.
The startup plans to use the funds to cater to Vegh’s working capital needs including the creation of a robust sales and distribution network, the expansion of its manufacturing capabilities for EV parts, and research and development.
In addition, Vegh also plans to introduce two highly anticipated high-speed scooter models in the coming months.
Further, the startup aims to scale up its operations to three times the current capacity to meet the growing demand and seize business opportunities.
The startup claims to have outlined a strategic plan to bolster its sales infrastructure nationwide and also increase the production of its escooter Vegh S60.
Commenting on the development, cofounder Pragya Goyal & Sumeet Gupta said, “We are committed to our Make in India vision and are excited about the future of electric mobility. In the first phase of its expansion strategy, we aim to penetrate to 12 states with a robust sales and service network.”
Punjab seems to be actively promoting EV usages. Recently, Punjab’s transport minister Laljit Singh Bhullar announced that the state is going to offer around INR 300 Cr worth of incentives over the next three years to promote EV adoption.
Even amid the FAME-II policy concerns, EV startups are able to bag funds. Earlier this year, escooter startup Zypp Electric raised $25 Mn in a mix of equity and debt.
However, owing to the FAME-II hiccups, the registration of two-wheeler EVs fell 56% month-on-month (MoM) to 45,734 units in June.
