With the Battery-as-a-Service (BaaS) model getting a second coming, service providers are confident that the market has developed significantly for EVs so that the model can become successful. In a market where vehicle ownership and BaaS might look unfitting, truth be told BaaS is a blessing for EV ownership. In a candid discussion, Xitij Kothi, Co-founder of Vidyut, shared the motivation behind founding the company and the significant role of the BaaS model in electric vehicle (EV) ownership in India. He noted that India, as the third-largest automotive market globally, has immense potential to lead in sustainable mobility yet lags in sectors such as cars and small pick-up trucks.
Drawing from his experience as a second-time founder, Kothi highlighted the importance of sustainable growth and long-term impact.
Understanding The Customer
Could you share the inspiration behind founding Vidyut and the journey so far? How has your experience as a second-time founder shaped this venture?
Vidyut was established three years ago with a focused mission to accelerate the adoption of electric vehicles (EVs) in India. As one of the largest auto markets globally, India possesses significant potential to lead the transition to sustainable mobility. However, the pace of EV adoption in India lags behind global standards, particularly in segments like cars and small pickup trucks. While two- and three-wheeler EVs have seen encouraging growth, broader penetration remains elusive. Vidyut’s goal is to make EV ownership an intuitive choice for everyone by addressing key barriers and simplifying decision-making for potential customers.
Drawing on lessons from a previous entrepreneurial venture, I have prioritised a long-term mindset over short-term gains. This perspective ensures Vidyut remains aligned with evolving customer needs and creates a robust foundation for sustained growth.
Lowering Barriers To Commercial EV Adoption
Vidyut’s model stands out with its battery subscription and end-to-end ownership solutions. How do these reduce barriers to commercial EV adoption?
Vidyut’s Battery-as-a-Service (BaaS) model addresses two critical challenges in commercial EV adoption: high upfront costs and uncertainties around battery life and resale value. Unlike traditional internal combustion engine (ICE) vehicles, where fuel costs are operational, EVs bundle the cost of the battery—equivalent to fuel—into the vehicle price, inflating upfront costs.
Our model decouples the battery cost, reducing the vehicle’s price by 30–40%. This translates to a price reduction of 5–10% compared to ICE vehicles, making EVs more accessible. Customers instead pay a per-kilometre usage fee for the battery, which is 40–50% cheaper than fossil-fuel running costs.
In addition to financial flexibility, we provide a buyback guarantee and resale value assurance for EVs, addressing concerns about residual value and battery health. Our maintenance solutions further ensure a seamless ownership experience, offering superior total cost of ownership (TCO) benefits from day one. This holistic approach eliminates barriers, making EVs an obvious choice for commercial purposes.
Meeting The Needs Of Diverse Customer Segments
Your business model spans B2B and B2C segments. How do you cater to the varied needs of these groups effectively?
While Vidyut operates across B2B and B2C segments, the needs within these categories vary widely. Some customers prioritise minimal upfront costs, others aim for low monthly operating expenses, while many focus on TCO or return on investment. We address these diverse priorities by designing financial products such as loans, leases, and flexible ownership options tailored to specific requirements.
The adaptability of our BaaS model allows us to create custom solutions, ensuring that each customer, whether an individual or enterprise, receives value-aligned offerings. This flexibility is key to catering to a wide range of ownership mindsets and operational goals.
Strategic OEM Partnerships
Vidyut has partnered with several OEMs. How do these collaborations support your mission?
Partnerships with OEMs are at the core of Vidyut’s mission to make EVs affordable and accessible. Collaborations with brands like JSW MG, Mahindra, Euler, Tata Motors, Piaggio, and Montra provide us with the asset insights necessary to optimise our offerings. For instance, understanding battery lifecycle and performance is crucial for designing effective BaaS solutions, and OEM partnerships enable data sharing that supports this.
Euler Motors was among our earliest collaborators, helping us launch services that have since expanded to include a diverse portfolio of industry leaders. These partnerships are instrumental in refining our solutions and ensuring that we deliver reliable, customer-focused products.
Expansion Strategy & Operational Consistency
Vidyut is operational in 25 cities and aims for further expansion by FY’25. How do you plan to scale while maintaining consistency in customer experience?
Our strategy for expansion balances centralisation with decentralisation. Centralised processes maintain consistency in customer service, ensuring uniform standards of quality, efficiency, and reliability. Simultaneously, decentralised operations enable us to adapt to the unique needs of local markets, fostering responsiveness and agility.
This dual approach ensures that as we grow geographically, our customers continue to receive the same seamless experience regardless of location.
Battery Lifecycle Challenges
How is Vidyut tackling challenges like battery lifecycle management and maintenance costs?
Battery lifecycle management and maintenance costs are addressed through a combination of data integration and strategic partnerships. Smart batteries equipped in modern EVs allow us to monitor battery health and residual value effectively through collaborations with OEMs. We also work with second-life and recycling partners to repurpose used batteries responsibly, reinvesting recovered value to lower costs for customers.
Our maintenance bundles further reduce ownership expenses, offering services such as free maintenance, auto insurance renewals, and resale guarantees at highly affordable rates. This integrated approach ensures sustainability and cost efficiency for our customers.
Adapting To Market Trends & Challenges
With increasing EV penetration in Tier-2 and Tier-3 cities, how is Vidyut adapting to trends like shared mobility? What challenges do you foresee for the BaaS model in the passenger vehicle segment?
Expanding into Tier-2 and Tier-3 cities presents unique challenges, including high capital requirements and limited OEM partnerships. To address these, Vidyut is forging collaborations with banks and expanding its network of OEM partners. These efforts aim to overcome geographical and financial barriers, enabling broader adoption of EVs across urban and rural areas alike.
Shared mobility and affordable solutions will also shape the future of EV ownership. By continuously evolving our model and focusing on affordability, we are well-positioned to drive greater EV adoption across diverse markets.
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