Vidyut, an electric vehicle (EV) financing firm, has made headlines by securing $10 million in a mix of equity and debt funding round led by new investor 3one4 Capital. Existing investors like Force Ventures and Udaan founder Sujeet Kumar and new investors Saison Capital, Zephyr Peacock, and Alteria Capital also participated in the funding round.

As per the startup, the freshly raised funds will be used to expand operations to 40 cities and add talent.

Vidyut | EV Finance Firm

Founded by Gaurav Srivastava and Xitij Kothi, Vidyut is simplifying EV ownership by offering customers end-to-end solutions for purchase, financing & resale. The EV financing firm mostly finances electric three-wheeled vehicles for both passenger and cargo usage, with over 85% of the customers being small and micro businesses who are also first-time fleet owners.

Speaking about the development, Gaurav Srivastava, Co-founder of Vidyut, highlighted that the current investment in the startup is a testament to their innovative approach to combining technology and financial services to serve the EV market.

Srivastava added that the team is glad to welcome 3one4 and Saison to its capable, with plans to deliver a seamless, integrated experience for its customers.

Statement from the Investor

Commenting on the development, Sonal Saldanha, Vice President, Investments, 3one4 Capital, highlighted that EVs pose new underwriting and product structuring challenges to financiers, also mentioning that Vidyut’s model removes EV adoption barriers, primarily in the large but price-sensitive driver cum owner segment.

Saldanha added,

“At 3one4 Capital, we are excited to back the Vidyut team in their mission to simplify EV ownership.”

With the raised funds, Vidyut looks to expand beyond financing solutions to encompass insurance, services, and maintenance for such electric vehicles. It aims to focus on elevating the entire EV ownership journey for India’s SMBs. Currently, the EV-tech-led platform is running two pilot projects for vehicle insurance and resale. It is working with various insurers to introduce EV-focused products and will soon start pilots for EV servicing and maintenance.

Recently, Hyderabad-based electric two-wheeler firm Pure EV secured $8 million in funding, highlighting the interest of investors in the EV sector.

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