Bengaluru-based startup Vidyut (VT), which focuses on electric vehicles (EVs), has launched a new Battery-as-a-Service (BaaS) program. This initiative is in collaboration with JSW and MG Motor India, aiming to make electric car ownership more accessible and affordable.
What is Battery-as-a-Service?
The Battery-as-a-Service model allows customers to rent the battery separately from the car. This approach is available for passenger cars, including popular models like the MG Comet EV, MG Windsor EV, and MG ZS EV. Xitij Kothi, Co-Founder of Vidyut, explained, “People think of batteries as assets, but we view them as fuel. Why pay for a battery when the car is not in use?”
Under the Battery-as-a-Service program, customers can rent a battery starting at just Rs 2.5 per kilometer based on their usage. This innovative option can lower running costs by up to 40% compared to traditional gasoline cars. Kothi added, “Since 2021, we have successfully pioneered this financing model for commercial vehicles, and we are now excited to apply it to personal cars.”
Affordable EV Ownership
The BaaS model makes EV ownership more affordable by allowing customers to pay only for the car, excluding the battery. This significantly reduces the upfront cost of acquiring an electric vehicle. After 3 to 5 years, depending on the vehicle model, customers can choose to continue renting the battery or buy it outright. They also have the option to leave the program anytime by paying the battery’s residual value.
Gaurav Gupta, Chief Growth Officer at JSW MG Motor India, praised the collaboration, saying, “This unique ownership program helps overcome the high upfront cost of owning an EV and significantly reduces ongoing costs.” He believes this initiative will encourage more people to switch to electric vehicles, enhancing the EV lifestyle.
Know About Vidyut
Founded in 2021, Vidyut aims to make commercial EV ownership simple and risk-free. The startup uses advanced algorithms to provide affordable financing through a battery subscription model, helping more people access EVs. Vidyut is also involved in selling and financing used EVs, supporting the resale market for three-wheeler commercial EVs in major cities.
Currently, Vidyut operates in over 30 cities across India, partnering with well-known manufacturers like Tata Motors and Mahindra. The startup has raised $14 million in funding, with notable investors including 3one4 Capital and Saison Capital.
