Vidyut Bags $2.5 Mn To Expand Its BaaS Offerings For Passenger, Commercial EV Segments

Electric vehicle financing startup Vidyut has raised a fresh funding of $2.5 Mn (around INR 21.7 Cr) from Flourish Ventures.

The company plans to deploy the fresh proceeds to expand its battery-as-a-service (BaaS) offerings for passenger and commercial EV segments.

Speaking to Inc42, Vidyut cofounder Xitij Kothi said that after its recent partnership with MG Motors and foraying into new vehicle categories, the startup now aims to strengthen its balance sheet and scale up financing in these segments by adding equity to grow its loan book.

Founded in 2021 by Kothi and Gaurav Srivastava, Vidyut initially focused on EV financing for commercial EVs, offering two ownership plans. This includes a hybrid financing model that combined vehicle loans with a battery subscription and a traditional term loan plan.

However, last year, the company diversified into reselling EVs by launching an offline platform for sales and financing of pre-owned EVs. Sources also revealed that Vidyut has applied for non-banking financial company (NBFC) licence to enhance its operations in the EV financial sector. 

This investment follows Vidyut’s $10 Mn (around INR 83 Cr) Series A funding round last year, led by 3one4 Capital, along with participation from Zephyr Peacock, Saison Capital, Force Ventures, Alteria Capital, and Udaan’s Sujeet Kumar among others.

To date, Vidyut claims to have raised $16.5 Mn in total funding round. Though not the direct competitors, it competes with  Sun Mobility, Bounce Infinity, Urja Mobility among others in the broader EV and battery management sector.

The funding announcement coincides with the government’s recent initiative to push for adoption of the BaaS model. Last month, the ministry of power introduced guidelines focussed on standardising and promoting battery swapping infrastructure across India for the adoption of the BaaS model. 

To accelerate EV adoption in India, the government has also introduced several initiatives including FAME-I in 2015, FAME-II in 2019 and the more recent PM E-DRIVE Scheme. 

The Indian EV market also seems to be at a global epicentre with several global EV companies exploring opportunities in India. For instance, Tesla plans to open showrooms in Mumbai and Delhi, with expansion depending on tariffs and policies. 

Despite this international attraction, the EV startup funding landscape has seen a decline of nearly 31% to $624 Mn across 43 deals in FY24, according to Inc42’s ‘India’s Electric Vehicle Startup Report 2025’.