Bengaluru, January 2026: Vimag Labs, a deep-tech startup developing next-generation electric motor technology, has raised $5 million in a funding round led by Accel, with participation from Chakra Growth Fund and Thinkuvate.
The fresh capital will be used to accelerate commercialisation of Vimag Labs’ patented virtual magnet synchronous motor platform and to expand its engineering and manufacturing capabilities, the company said in a statement.
Rethinking Electric Motors Without Rare Earth Metals
Co-founded in September 2025 by Manish Seth and Piyush Desai, Vimag Labs is building magnet-free electric motor technology aimed at reducing the global automotive and industrial sectors’ dependence on rare earth metals. These materials are often associated with high cost volatility, supply-chain risks, and geopolitical constraints.
The Bengaluru-based startup is developing high-efficiency electric motors for applications across electric vehicles (EVs), industrial machinery, HVAC systems, refrigeration, and defence, without relying on permanent magnets.
Software-Defined Motors with Virtual Magnets
According to the company, Vimag Labs’ motors are largely software-defined. Instead of using physical magnets, the system employs advanced power electronics and control software to electronically generate magnetic fields inside the motor.
This approach enables the motors to deliver the performance and efficiency of magnet-based systems, while avoiding challenges such as rare earth sourcing, cost fluctuations, and recycling complexity.
The startup is currently prioritising two-wheeler and three-wheeler EV segments for initial commercial deployment, where cost sensitivity and scalability are critical. Over time, it plans to expand into industrial and infrastructure applications, including HVAC and refrigeration systems.
Advanced Testing and OEM Engagements
Vimag Labs said its motor technology is undergoing real-world vehicle testing and has reached Technology Readiness Level (TRL) 7, indicating successful system demonstration in operational environments.
The company has already begun commercialising components of its electronics stack and is actively working with multiple large original equipment manufacturers (OEMs) in India and international markets.
For automakers, the solution is designed as a plug-and-play, drop-in system, requiring no major changes to existing vehicle platforms or manufacturing lines—a key advantage for rapid adoption and scale.
Addressing a Strategic EV Supply-Chain Challenge
As global demand for electric mobility accelerates, automakers are increasingly seeking alternatives to rare earth-dependent motor designs. Vimag Labs’ approach aligns with broader industry efforts to improve cost stability, sustainability, and supply-chain resilience in EV manufacturing.
With backing from Accel and other investors, Vimag Labs is positioning itself as a critical deep-tech enabler in the next phase of electric motor innovation—where performance, scalability, and strategic independence are becoming as important as efficiency.
Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape.