Vegh, an electric vehicle (EV) startup, has successfully raised $5 million in a Pre-Series funding round led by an undisclosed investor. This funding marks a significant milestone for the company as it continues its ongoing Pre-Series fundraising round, targeting a total of $50 million.
Established in 2021 by Sumeet Gupta, Pragya Goyal, Kamalchand Bothra, Ashkaran Bothra, and Namrata Gupta, Vegh operates a manufacturing unit in Punjab, serving as both a production facility and research and development hub with a capacity to manufacture 60,000 units annually.
The latest funding will be utilized to address Vegh’s working capital requirements, including the establishment of a robust sales and distribution network, expansion of manufacturing capabilities for EV components, and further research and development efforts.
Vegh also has plans to introduce two eagerly anticipated high-speed scooter models in the coming months, aiming to cater to the increasing demand and seize business opportunities in the EV market.
In line with its expansion strategy, the startup aims to scale up its operations to three times the current capacity, enabling it to meet growing customer demand. Additionally, Vegh intends to strengthen its sales infrastructure nationwide and increase production of its escooter model, 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. They outlined their goal to penetrate 12 states in the first phase of expansion, establishing a robust sales and service network.
The state of Punjab has shown active support for EV adoption, with Transport Minister Laljit Singh Bhullar recently announcing incentives worth approximately INR 300 crore over the next three years to encourage the transition to electric vehicles.
Despite concerns related to the FAME-II policy, which impacted EV registrations, startups in the EV sector, including Vegh, have continued to secure funding. Earlier this year, escooter startup Zypp Electric raised $25 million through a combination of equity and debt.
With the backing of this recent funding, Vegh is poised to make a mark in the EV market by introducing high-speed escooters and expanding its presence, contributing to the growth of sustainable transportation options in India.
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