EV firm Vegh gets $5 million in pre-series round

Vegh, an early-stage EV firm, has raised $5 million in a pre-series round of funding. The startup will use the money primarily to bolster the company's working capital needs, including the creation of a robust sales and distribution network, the expansion of its manufacturing capabilities for EV parts, and investment in research and development (R&D) initiatives.

Founded in 2021 by Sumeet Gupta, Pragya Goyal, Kamalchand Bothra, Ashkaran Bothra, and Namrata Gupta, Vegh is a two-wheeler e-scooter brand. Its manufacturing facility, located in Bathinda, Punjab, has an annual production capacity of 60,000 units and serves as its research and development hub as well.  

"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," said Sumeet Gupta.

"In the first phase of its expansion strategy, we aim to penetrate 12 states with a robust sales and service network," said Pragya Goyal.

The company aims to improve the Vegh S60 electric scooter series' production capacity, countrywide sales infrastructure, and the introduction of two eagerly awaited high-speed scooter versions in the upcoming months.

In addition, Vegh also plans to introduce two highly anticipated high-speed scooter models in the coming months.

EV entrepreneurs are able to get money despite FAME-II regulation concerns. E-scooter firm Zypp Electric raised $25 million earlier this year with a combination of equity and debt.

The registration of two-wheeler EVs, however, decreased by 56 per cent Month-on-Month (MoM) to 45,734 units in June as a result of FAME-II glitches.