Accel leads a $5 million fundraising round for Vimag Labs

Bengaluru’s Vimag Labs Raises $5 Million to Build Magnet-Free Electric Motors

Deeptech startup Vimag Labs has raised $5 million in funding in a round led by Accel, with participation from Chakra Growth Fund and Thinkuvate. The fresh capital will be used to speed up the commercialisation of its motor technology and expand engineering and manufacturing capabilities.

Founded by Manish Seth and Dr Piyush Desai, Vimag Labs is developing magnet-free electric motors and control systems that aim to deliver the same efficiency as permanent magnet motors without using rare earth metals.

Rare earth materials, widely used in electric motors, often face price volatility, supply chain issues, and geopolitical risks, as most of them are refined in China. Vimag’s technology is designed to overcome these challenges.

“Electric motors are everywhere — from electric vehicles to industrial machines and home appliances. But the most efficient ones depend on rare earth metals,” said Seth, founder and CEO. “Our platform delivers higher efficiency without magnets and can reduce costs in the long run.”

Unlike traditional induction motors, which are less efficient, Vimag’s motors are software-defined. Using advanced electronics and control software, the system creates magnetic fields electronically inside the motor, removing the need for physical magnets.

The startup is initially focusing on two- and three-wheeler electric vehicles for commercial use. It also sees opportunities in HVAC systems, refrigeration, and defence applications.

Vimag said its technology is currently undergoing real-world vehicle testing and has reached Technology Readiness Level (TRL) 7. The company has already started commercialising parts of its electronics platform and is working with several large original equipment manufacturers (OEMs) in India and abroad.

Its solution is designed as a plug-and-play system, allowing automakers to adopt it without major changes to existing production lines.

“Vimag Labs is creating a fundamentally new electric motor platform as electrification faces constraints around cost and supply chains,” said Barath Subramanian, Partner at Accel, adding that the startup’s magnet-free architecture could reshape electric drivetrain design.