EV financing firm Vidyut to utilise $10 million fundraise for product and geographical expansion

In a recent boost to India's rapidly evolving electric vehicle (EV) and cleantech sectors, Vidyut, an EV financing company, has successfully raised $10 million in a funding round that included a mix of equity and debt. The funding round was led by 3One4 Capital, with participation from Saison Capital, Zephyr Peacock, and Alteria Capital.

Gaurav Srivastava, Co-Founder of Vidyut, expressed excitement about the funding, stating, "With this fundraise, we will be launching new product lines, moving into the overall EV ownership journey. We will also be moving into simplifying the insurance, servicing as well as the resale experience of the EV buyers."

Vidyut, founded in 2021, specialises in catering to electric three-wheeler vehicle fleet owners. The company provides financing and ownership plans that aim to reduce the risk associated with owning the battery—the most crucial component of an EV.

Srivastava explained, "We charge for the battery on a pay-per-kilometre model, changing the capital expenditure of the battery upfront into an operational expense and making EV usage cheaper than petrol or an ICE vehicle from day zero."

Highlighting their core product, Srivastava added, "We also offer battery resale and battery exchange offers, so that the end customer who is the auto driver doesn’t really have to worry about the lifetime of the battery."

Currently operating in 22 cities, Vidyut is strategically expanding its presence to align with the evolving EV market. Srivastava mentioned, "The EV market is moving towards more of tier-I and the satellite towns around the metro cities, so we are also expanding there along with the OEMs, and that is where we see the bulk of our growth coming."

In another significant funding development, cleantech-focused non-banking financial company (NBFC) Metafin has secured $5 million in equity funding. Prime Venture Partners led the funding round, with other participants contributing to the capital infusion.

Metafin, founded in 2019, plays a crucial role in helping businesses transition from fossil fuel to cleaner energy sources. The $5 million fundraise is expected to propel the company's growth, with plans to expand assets under management from $2.5 million to about $10-15 million.

Sandeep Chopra, founder and CEO of Metafin, outlined the utilisation of funds, saying, "We will be deploying funds for improving our customer experience by investing significantly in the tech stack. Lastly, the funds will be used to strengthen the senior management team and the teams across the other states that we are targeting."

Chopra also expressed Metafin's ambition to deepen its impact in Uttar Pradesh and Bihar and expand into Jharkhand, Odisha, and Rajasthan in the next 12-15 months.

Moreover, Arjun Khanna, founder of Mhymatch, shed light on the company's innovative use of artificial intelligence (AI) over WhatsApp to connect people for employment, funding, mentoring, and shared interests.

Khanna emphasised that the company has significantly reduced the cost and time to hire, by deploying AI-based screening, assessment, and interviews, resulting in increased efficiency and streamlined processes.