Electric vehicle (EV) startup Vegh raised $5 million in Pre-Series led by an undisclosed investor. This investment marks a significant milestone for the company in its ongoing $50 million Pre-Series fundraising round.
Vegh, founded in 2021 by Sumeet Gupta, Pragya Goyal, Kamalchand Bothra, Ashkaran Bothra, and Namrata Gupta, operates a manufacturing unit in Punjab that serves as both its research and development hub. The facility has a production capacity of 60,000 units per year.
The recently acquired funds will be utilized to meet Vegh’s working capital requirements, including the establishment of a robust sales and distribution network, expanding manufacturing capabilities for EV components, and furthering research and development efforts. Additionally, Vegh has plans to introduce two highly anticipated high-speed scooter models in the coming months.
The startup aims to scale up its operations to three times the current capacity in order to meet the growing demand and capitalize on business opportunities. Vegh has outlined a strategic plan to strengthen its sales infrastructure nationwide and increase the production of its escooter model, Vegh S60.
Commenting on the funding, co-founders Pragya Goyal and Sumeet Gupta expressed their commitment to the “Make in India” vision and their excitement about the future of electric mobility. In the initial phase of expansion, Vegh aims to establish a strong sales and service network across 12 states.
Punjab is actively promoting EV usage, with the state’s transport minister, Laljit Singh Bhullar, recently announcing incentives worth approximately INR 300 crore over the next three years to encourage EV adoption.
Despite concerns surrounding the FAME-II policy, EV startups continue to secure funding. Earlier this year, escooter startup Zypp Electric raised $25 million through a mix of equity and debt.
However, due to challenges related to the FAME-II policy, the registration of two-wheeler EVs experienced a 56% month-on-month decline, falling to 45,734 units in June.