EV financing startup Vidyut bags $2.5M from Flourish Ventures

Vidyut bags $2.5M from Flourish Ventures. The funding will be used to spearhead the firm’s growth in the passenger vehicle segment and scaling up commercial EV segment.

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Below is an excerpt from the post that appeared on ‘Your Story’ on 26 February 2025:

Full stack EV ecosystem startup Vidyut has raised $2.5 million in a new funding round from Flourish Ventures, a global VC firm. The newly raised funds will be used to expand the company’s Battery-as-a-Service (BaaS) offerings in both passenger and commercial electric vehicle segments, the company said.

BaaS model allows users to lease battery usage instead of buying the battery upfront. This allows customers to reduce the upfront costs of purchasing an EV significantly. Vidyut’s BaaS offerings are able to bring down the upfront acquisition cost of three-wheelers by almost 35% to 40%. “Through our BaaS offering, we are able to bring the upfront acquisition cost of EVs down by almost 35% to 40%. It reduces the monthly cash outflow for consumers by 10% to 15%,” said Xitij Kothi, Co-founder, Vidyut, in an interview with YourStory. 

On response to the company’s BaaS offering from both commercial and personal commute customers, he said, “I think we’ve seen a phenomenal response to our BaaS offering on the commercial side. These businesses face concerns around unknown recurring capital expenditure, uncertainty around battery life, battery replacement cost, etc. Our model addresses that head on. Hence, at least on the commercial side, we’ve been able to see a very good response. On the personal vehicle side also, I think the consumer response has been decent.”

Currently, the personal commute segment accounts for 20% of the Bengaluru-based startup’s overall business while 80% continues to be driven by the commercial vehicle segment. 

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