Vegh, an electric vehicle (EV) startup, has successfully raised $5 million in a Pre-Series funding round, spearheaded by an undisclosed investor. This achievement marks a significant milestone for the company as it continues its ongoing $50 million Pre-Series fundraising campaign.
Established in 2021 by founders Sumeet Gupta, Pragya Goyal, Kamalchand Bothra, Ashkaran Bothra, and Namrata Gupta, Vegh operates a manufacturing unit in Punjab, which serves as both its research and development hub and boasts an impressive production capacity of 60,000 units annually.
With the newly acquired funding, Vegh plans to address its working capital requirements, including the establishment of a robust sales and distribution network, an expansion of its EV parts manufacturing capabilities, and further research and development endeavors.
Excitingly, the startup is gearing up to introduce two highly anticipated high-speed scooter models in the coming months, enhancing its offerings in the market.
Looking ahead, Vegh aims to scale up its operations to triple the current capacity to effectively meet the surging demand and capitalize on burgeoning business opportunities.
The company has outlined a strategic plan to strengthen its sales infrastructure across the nation while significantly increasing the production of its popular escooter model, Vegh S60.
Co-founders Pragya Goyal and Sumeet Gupta expressed their enthusiasm about the future of electric mobility and reaffirmed their commitment to the Make in India vision. In the initial phase of expansion, Vegh aims to establish a presence in 12 states, bolstered by a robust sales and service network.
Punjab, the state where Vegh’s manufacturing unit is based, is actively promoting EV adoption. The state’s transport minister, Laljit Singh Bhullar, recently announced plans to offer approximately INR 300 crore worth of incentives over the next three years to encourage the uptake of EVs.
Despite concerns surrounding the FAME-II policy, EV startups like Vegh continue to secure substantial funding. Earlier this year, escooter startup Zypp Electric raised $25 million through a combination of equity and debt.
However, it is noteworthy that two-wheeler EV registrations faced a 56% month-on-month decline in June, reflecting some challenges related to the FAME-II policy.
Nevertheless, Vegh’s successful funding round signifies investor confidence in the growth potential of the EV sector in India and highlights the company’s dedication to making a positive impact in the burgeoning electric mobility market.
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