Vegh, an electric vehicle (EV) startup, has successfully raised $5 million in a Pre-Series funding round led by an undisclosed investor. This investment marks a significant milestone in Vegh’s ongoing Pre-Series fundraising round, which aims to secure a total of $50 million.
Founded in 2021 by Sumeet Gupta, Pragya Goyal, Kamalchand Bothra, Ashkaran Bothra, and Namrata Gupta, Vegh operates a manufacturing unit in Punjab that serves as its research and development hub. With a production capacity of 60,000 units per year, the company focuses on producing high-quality EVs.
The recently secured funds will be utilized to fulfill Vegh’s working capital requirements, including the establishment of a robust sales and distribution network, the expansion of manufacturing capabilities for EV parts, and investments in research and development initiatives.
Vegh also has plans to introduce two highly anticipated high-speed scooter models in the upcoming months. By doing so, the startup aims to cater to the evolving demands of the market and capitalize on business opportunities.
To meet the increasing demand and seize growth opportunities, Vegh intends to scale up its operations to three times the current capacity. Additionally, the company has outlined a strategic plan to strengthen its sales infrastructure nationwide and boost the production of its flagship e-scooter, the Vegh S60.
Co-founders Pragya Goyal and Sumeet Gupta expressed their commitment to the Make in India vision and their enthusiasm for the future of electric mobility. In the initial phase of expansion, Vegh aims to penetrate 12 states by establishing a robust sales and service network.
The state of Punjab has been actively promoting the adoption of EVs. Transport Minister Laljit Singh Bhullar recently announced that the government would provide incentives worth approximately INR 300 crore over the next three years to encourage EV usage.
Despite concerns surrounding the FAME-II policy, EV startups like Vegh continue to attract funding. Earlier this year, e-scooter startup Zypp Electric raised $25 million through a combination of equity and debt financing.
However, due to the challenges posed by the FAME-II policy, the registration of two-wheeler EVs witnessed a decline of 56% month-on-month (MoM), with only 45,734 units registered in June.
Vegh’s successful funding round showcases investor confidence in the potential of the EV market, and the company is well-positioned to contribute to the growth of sustainable transportation solutions in India.
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