Vidyut, an electric vehicle (EV) ecosystem platform, has raised $2.5 million in funding from global investor Flourish Ventures.

The company will utilize the acquired funds to expand its Battery-as-a-Service offering in passenger and commercial EV segments.

By unbundling batteries from EVs and offering them on a pay-per-km subscription basis, Vidyut claimed it had reduced upfront electric three-wheeler costs by 35-40%.

“With proven unit economics, strong 15% month-on-month growth, and long-term OEM partnerships, this investment will help us scale our innovative financing and lifecycle solutions across new vehicle segments,” said Xitij Kothi, Co-Founder, Vidyut.

In 2023, the company expanded its offering to include EV resale and lifecycle management solutions. In 2024, the company entered the passenger EV market through a partnership with JSW MG Motor India.

Vidyut has a distribution network across 30 cities, with partners including TATA Motors, JSW MG Motor India, Mahindra Last Mile Mobility, Piaggio, Euler Motors.

Vidyut has raised $16.5 million in capital from investors including 3one4 Capital, Saison Capital, Zephyr Peacock, and Flourish Ventures so far.

Many EV companies have been raising funds in recent months, even as EV sales in India reached a record 1.95 million units in 2024, an over 27% growth against the 1.53 million units sold in 2023.

EVs accounted for 3.6% of overall automobile sales in 2024. The EV market consistently crossed 100,000 units, with October registering the highest sales at 219,527 units, followed by March with 213,068 units and November with 192,681 units.

Last September, the Union Cabinet approved the PM E-Drive program with a budget of ₹36.79 billion ($438.1 million) in subsidies to promote electric two-wheelers, three-wheelers, e-ambulances, e-trucks, and e-buses. Specifically, it aims to support the deployment of 2.479 million electric two-wheelers, 316,000 three-wheelers and 4,028 buses.

Under the program, EV buyers will receive an Aadhaar-verified e-voucher, which must be presented to the dealer. The buyer and the dealer will sign the e-voucher, which will then be uploaded to the PM E-DRIVE portal, allowing the Original Equipment Manufacturers to claim reimbursement for the incentives.