vidyut tech funding: EV financing startup Vidyut Tech raises $4 million in fairness and debt funding
Among the most distinguished names within the startup ecosystem participated within the spherical: Sujeet Kumar, cofounder of Udaan; Sahil Barua, cofounder of Delhivery; Kunal Shah, cofounder of Cred; Sriharsha Majety, cofounder of Swiggy; and Rajat Verma cofounder of Lohum.
Following the funding, the startup goals to accomplice with extra EV makers and broaden to extra geographies. It’ll additionally double the headcount of its credit score, engineering, and gross sales groups.
Based in 2021, Vidyut Tech primarily caters to the business automobile fleet homeowners by offering them with EV financing and possession plans that takes away the danger of proudly owning a battery. The startup has already partnered with EV makers similar to Mahindra, Altigreen, Euler Motors and OSM autos to offer what it claims is a “one-of-a-kind automobile possession resolution to business automobile homeowners”.
Business automobile homeowners can purchase autos with out proudly owning the battery, thereby bringing down the upfront price of shopping for an EV in contrast with diesel-powered autos.
Uncover the tales of your curiosity
The down fee necessities for EVs are 2.5-3 instances dearer than within the case of diesel autos, the corporate claims. The possession of the battery and the related liabilities will lie with Vidyut Tech.
The corporate mentioned it has unique entry to automobile and battery testing information from EV makers by way of which it has been capable of construct its proprietary underwriting mannequin.
The startup is ready to remedy for the uncertainty round battery life and the excessive substitute price of batteries, which is 40-50% of the automobile worth, which is making business automobile homeowners hesitant to purchase batteries.
After three to 5 years of utilizing the battery in an EV, its life degrades and the battery normally goes straight to recycling the place totally different components like lithium, nickel and magnesium are extracted individually for reusing.
Vidyut Tech claims will probably be capable of get a residual worth for these by promoting the outdated batteries for various use circumstances like power storage, and supply a brand new battery to the automobile homeowners freed from price. Vidyut Tech has partnered with NBFC and gives an efficient rate of interest of as little as 7% to its prospects.
“The largest client must unlock business EV adoption is sensible financing,” mentioned Xitij Kothi, cofounder of Vidyut Tech. “Whereas OEMs are pushing the frontiers of EV tech, the market has lagged in innovating on the financing entrance. The lifecycle and the possession journey of an electrical journey are very totally different from that of an ICE automobile. The market wants financing options tailor-made for EVs. At Vidyut, we’re leveraging EV tech, with help from our OEM companions, to construct a expertise stack that essentially adjustments the possession expertise.”
Kothi has labored throughout a number of unicorns, together with Swiggy, Rivigo, and Flipkart. The opposite cofounder Gaurav Srivastava has labored with EV and shared mobility startup Bounce and Boston Consulting Group, working within the automotive sector.
“There’s a big demand and continued shift within the technique of huge enterprises throughout industries which at the moment are transferring their provide chains in the direction of clear power and welcoming expertise options,” mentioned Udaan’s Kumar. “But, to scale huge in India, the ability lies in unlocking the worth from small fleet homeowners and customers who will finally drive the adoption.”
Source link