EV Startup Vegh Raises $5 Million to Expand Equipment Manufacturing

The funding is part of Vegh's ongoing $50 million pre-series fundraising round


Punjab-based electric-two-wheeler manufacturing startup Vegh has secured $5 million in a strategic pre-series investment round from an undisclosed investor.

The proceeds of the funds will be used to support Vegh’s working capital needs, including creating a robust sales and distribution network and expanding its manufacturing capabilities for electric vehicle (EV) parts.

In the first phase of its expansion strategy, the company aims to penetrate into 12 states, expand the production capacity of its e-scooter series, the Vegh S60, and introduce two highly anticipated high-speed scooter models.

The funds will also be used for research and development activities in the EV sector.

The funding is part of Vegh’s ongoing $50 million pre-series fundraising round.

Founded in 2021, the company has a manufacturing facility in Bathinda, Punjab, with a production capacity of 60,000 units per year.

The company plans to scale its operations threefold to meet the growing demand for e-mobility.

Founder and Managing Director of Vegh Sumeet Gupta said, “We are thrilled to secure this investment in our pre-series round, which reflects the confidence and support we have garnered from our investors. We are committed to our Make in India vision and are excited about the future of electric mobility. The funds will be instrumental in driving Vegh’s expansion plans, strengthening our sales and service network, and establishing Vegh as a leading EV brand in India.”

Electric vehicle sales in India grew by 66% year-over-year to 371,340 units in the second quarter of 2023, compared to 223,293 units sold in the corresponding quarter last year.

Last month, EV charging tech startup 82Volt raised ₹50 million (~$606,908) from angel investors in a seed funding round to expand its installed capacity to 100 chargers within the next two months through the company’s channel partners.