Bengaluru, February 26th, 2025
Vidyut has secured $2.5 million in fresh funding from Flourish Ventures. The full-stack EV ecosystem startup will use this money to grow its innovative battery leasing solutions across India.
The Bengaluru-based company plans to expand its Battery-as-a-Service (BaaS) model. This approach lets customers rent batteries instead of buying them. As a result, buyers can avoid the steep upfront costs that often discourage EV purchases.
“Our BaaS offering cuts the upfront cost of EVs by nearly 35% to 40%,” said Xitij Kothi, Co-founder of Vidyut. “Moreover, it reduces monthly expenses for consumers by 10% to 15%.”
Strong Growth in Commercial Market
The company has found major success in the commercial vehicle sector. Currently, this segment makes up about 80% of its business. Meanwhile, personal vehicles account for the remaining 20%.
“We’ve seen a fantastic response to our BaaS offering from commercial clients,” Kothi explained. “These businesses worry about unpredictable capital costs and battery replacement expenses. Our model directly addresses these concerns.”
Most of Vidyut’s customers are individual buyers. However, fleet owners and B2B clients make up 15-20% of its customer base. Furthermore, the company reports steady growth, with loan disbursements increasing by 15% each month.
“We aim to at least double our overall assets under management by next fiscal year,” Kothi added.
Expanding Through Partnerships
To strengthen its position in the passenger vehicle market, Vidyut is now talking with several vehicle manufacturers. Although Kothi didn’t name specific companies, he confirmed a previous partnership with JSW MG Motor from September 2024.
These strategic relationships will help Vidyut create custom offerings for personal vehicle owners. Consequently, the company hopes to increase its reach across India’s growing EV market.
Founded by Industry Veterans
Established in 2021, Vidyut was created by former Swiggy and Bounce executives Xitij Kothi and Gaurav Srivastava. The company has shown impressive financial performance since then. For instance, Vidyut boasts an 80% recovery rate on problem loans, which greatly exceeds industry standards for traditional vehicles.
This latest funding follows a larger $10 million Series A round from February 2024. Currently, Vidyut operates in 30 Indian cities. Additionally, the company focuses on selling and financing used EVs, especially three-wheeler commercial vehicles in Delhi NCR, Bengaluru, and Hyderabad.
As India’s EV adoption grows, innovative payment models like Vidyut’s battery leasing service could be crucial. In fact, such approaches may bridge the gap between interest in EVs and actual purchases.
