Vidyut, an EV ecosystem start-up, has raised $10 million in its Series A round, led by 3one4 Capital. The round also witnessed participation from new and existing investors namely, Saison Capital, Zephyr Peacock, Force Ventures, a venture debt fund Alteria Capital, and CEO of Udaan, Sujeet Kumar. The Series A round is a mix of equity and debt funding.

This funding will enable the company to scale its offering to the EV ecosystem, the company said in a release. Vidyut will now offer EV insurance, Lifecycle Management, and EV resale, with an aim to simplify the entire EV ownership experience. It is also looking to expand its presence to 40 Indian cities. The company will be doubling its team size by the end of FY-25 as it prepares to build a full-stack EV ecosystem, it added.

“Electric vehicles pose new underwriting and product structuring challenges to financiers. EVs also meaningfully expand the role of data in the lifecycle of a financing journey and make new lending models possible. Vidyut’s model removes EV adoption barriers, especially in the large but price-sensitive driver cum owner segment. At 3one4 Capital, we are excited to back the Vidyut team in their mission to simplify EV ownership,” said Sonal Saldanha, vice president, of investments, at 3one4 Capital.

The company offers one-of-a-kind battery subscription ownership plan powered by proprietary asset-underwriting algorithms. It has already offered ownership solutions for Mahindra, Piaggio, Altigreen, Murugappa Group’s Montra Electric, Euler Motors, and OSM vehicles.

“This investment is a testament to our innovative approach to combining technology and financial services to serve the EV market. Our focus is not just on financing but on elevating the entire EV ownership journey for India’s SMBs, who are the backbone of our economy. We’re glad to welcome long term partners like 3one4 and Saison to our captable and deliver a seamless, integrated experience for our customers,” said Gaurav Srivastava, co-founder of Vidyut.

In 2023, India experienced a substantial surge in electric vehicle (EV) sales, surpassing 1.5 million units—a 50 per cent increase from the previous year, according to CareEdge. Total EV sales reached 1.53 million, up from 1.02 million in 2022, signaling a robust growth trend in EV adoption. The overall share of EVs in India’s auto sales surged to 6.38 per cent in 2023 from 1.75 per cent in 2021, highlighting a significant shift in consumer preference towards electric vehicles over the span of two years.