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 for Vegh as it continues its ongoing $50 million Pre-Series fundraising campaign.
Established in 2021 by 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 center and production facility with a capacity of 60,000 units per year.
The secured funds will be utilized to address Vegh’s working capital requirements, including the development of a robust sales and distribution network, expansion of manufacturing capabilities for EV parts, and further investment in research and development initiatives.
In addition to these goals, Vegh has plans to introduce two highly anticipated high-speed scooter models in the coming months, catering to the growing demand for efficient and eco-friendly transportation options.
With an aim to capitalize on business opportunities and meet increasing demand, Vegh intends to scale up its operations threefold from the current capacity. The startup has outlined a strategic plan to enhance its sales infrastructure nationwide and boost production of its flagship escooter, Vegh S60.
Expressing their excitement about the future of electric mobility, Vegh’s co-founders, Pragya Goyal and Sumeet Gupta, emphasized their commitment to the Make in India vision. They stated that in the first phase of their expansion strategy, they aim to establish a strong sales and service network in 12 states.
Punjab, where Vegh’s manufacturing unit is located, has been actively promoting EV adoption. The state’s transport minister, Laljit Singh Bhullar, recently announced incentives worth approximately INR 300 crore ($40 million) over the next three years to encourage the use of electric vehicles.
Despite concerns surrounding the FAME-II policy, EV startups like Vegh continue to attract funding. Earlier this year, escooter startup Zypp Electric secured $25 million through a combination of equity and debt financing.
Although two-wheeler EV registrations experienced a 56% month-on-month decline to 45,734 units in June, Vegh and other players in the EV sector remain optimistic about the long-term prospects of electric mobility in India.
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