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3one4 Capital Leads Vidyut's $10M Series A Funding Round

February 20, 2024
4 mins

Vidyut, India’s fastest-growing EV financing and lifecycle management startup, has raised $10 million in a Series A round led by 3one4 Capital and Saison Capital, with participation from Zephyr Peacock Growth Fund, Force Ventures, and Alteria Capital.

Vidyut's Winning Formula for EV Ownership

Founded in 2021, Vidyut has quickly emerged as a pioneer in simplifying commercial EV ownership, making it more accessible, affordable, and devoid of financial risk. Through its innovative use of asset-underwriting algorithms and detailed battery health data analysis, Vidyut has developed a unique battery subscription financing model. This model not only makes electric vehicles more attainable for a broader audience but also addresses one of the primary hurdles in EV adoption: the high cost associated with EV batteries, which account for 30% to 40% of an electric vehicle's total cost.

By offering customers the option to loan the vehicle and rent the battery, Vidyut significantly reduces the required initial down payment. Vidyut specialises in the commercial vehicle segment, bringing together original equipment manufacturers (OEMs), lenders, borrowers, and stakeholders in the secondary market into a cohesive ecosystem, fostering a seamless value chain. 

Vidyut excels at: 

Assured Resale Value

Through its guaranteed buyback program, Vidyut promises a minimum resale value for the EV at the conclusion of the loan term. This initiative effectively eliminates resale anxiety, further incentivising the transition to electric vehicles. Additionally, Vidyut facilitates a direct resale channel between customers on their platform, enhancing the overall value proposition of EV ownership.

Building a Cohesive EV Ecosystem

Over the course of the last two years, Vidyut has established significant partnerships with leading OEMs in the commercial EV sector, such as Mahindra, and Piaggio. In addition, the company has forged collaborations with numerous NBFCs and banks to innovate underwriting processes, thereby facilitating EV ownership for gig workers and small to medium-sized businesses (SMBs). 

Gaurav Srivastava and Xitij Kothi represent the driving force behind Vidyut's mission to democratise EV ownership and facilitate a sustainable transition to electric mobility. Gaurav, with his rich experience from Bounce and BCG, specializes in EV operations, infrastructure setup, and strategic planning, underpinned by his education from IIT Kharagpur and IIM Ahmedabad. Xitij, an alumnus of IIT Bombay, brings entrepreneurial insight from founding Parcelled. His strategic roles at Rivigo and Swiggy offer strategic insights into logistics, category management, and business innovation at Vidyut. 

Expansion into EV Resale, Insurance & Servicing

With the latest infusion of capital, Vidyut is set to broaden its suite of services beyond financing, venturing into vehicle resale, insurance, and servicing. This strategic expansion is designed to streamline the entire EV ownership journey, offering a more comprehensive and hassle-free experience for customers.

"This investment is a testament to our innovative approach in 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." Gaurav Srivastava, co-founder of Vidyut 

3one4 Capital's Vision for an Accessible EV Future Through Vidyut

The electric vehicle (EV) market faces challenges and perceptions such as high upfront costs, uncertain asset life, unclear total cost of ownership (TCO) benefits, range anxiety, expensive battery replacement, unclear resale value, lack of a secondary market, and absence of service aggregation. Recognising these issues, Vidyut presents a comprehensive solution to address them, offering a unique opportunity to reshape the EV landscape.

Vidyut is a full-stack commercial EV ownership platform that offers vehicle financing, insurance, service/maintenance, battery assurance, and resale facilitation. The company has set a new benchmark for innovation and customer experience in the EV sector by addressing a wide range of EV ownership concerns within a single offering.

The hybrid financing model is Vidyut’s key innovation, well-received by OEMs, lenders, dealers, and vehicle owners for its ability to significantly lower the initial cost barrier and align operating expenses with usage patterns. This model effectively addresses the challenges of high down payments, interest rates, and EMIs, making EVs more accessible and appealing across the value chain. The innovative approach benefits all stakeholders: vehicle owners enjoy lower costs and a familiar operational model, OEMs see higher adoption rates, and dealers find EVs easier to sell against Internal Combustion Engine (ICE) equivalents.

“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, Investments, 3one4 Capital.

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