Vimag Labs Raises $5 Million to Transform Electric Motors Without Rare Earth Metals

Vimag Labs Raises $5 Million to Revolutionize Magnet-Free Electric Motors

Indian Deeptech Startup Secures Series A Funding

Bengaluru-based deeptech startup Vimag Labs has successfully raised $5 million in a Series A funding round, led by Accel, with additional participation from Chakra Growth Fund and Thinkuvate. The fresh capital will accelerate the commercialisation of its patented Virtual Magnet Synchronous motor platform and expand the company’s engineering and manufacturing capabilities.

Founded in September 2025 by Manish Seth and Dr. Piyush Desai, Vimag Labs is at the forefront of developing magnet-free electric motors and advanced power electronics solutions. The startup’s goal is to reduce dependence on rare earth metals, offering high-efficiency electric motors for electric vehicles (EVs), industrial machines, HVAC systems, refrigeration, and defence applications.

Virtual Magnet Motor: A Game-Changer in Electrification

Vimag Labs has introduced a patented Virtual Magnet motor architecture, which uses advanced electronics and control software to generate magnetic fields electronically. This approach delivers the performance of traditional magnet-based motors without relying on rare earth metals, which often face supply chain risks, cost volatility, and environmental concerns.

The motors are largely software-defined and designed as plug-and-play, drop-in systems for automakers, meaning no significant changes are required to existing manufacturing lines or vehicle platforms.

Target Markets: EVs, Industrial, and Defence Applications

Currently, Vimag Labs is focusing on commercialising two- and three-wheeler electric vehicles, while also exploring industrial and defence applications. The technology is undergoing real-world vehicle testing and has achieved Technology Readiness Level 7, indicating its readiness for near-commercial deployment.

The startup has already begun commercialising components of its electronics stack and is working with multiple original equipment manufacturers (OEMs) in India and abroad, signaling early adoption of its innovative platform.

Strategic Impact and Industry Potential

According to Manish Seth, Founder and CEO,

“This funding validates our conviction that Virtual Magnet motor architecture represents a fundamental shift in how the industry addresses electrification at scale. We are positioned to establish Virtual Magnet technology as the foundational platform for next-generation mobility, industrial, and defense systems.”

Barath Subramanian, Partner at Accel, added:

“Vimag Labs is redefining electric drivetrains with their magnet-free architecture and deep integration of power electronics and control software. Their platform addresses real constraints around cost, materials, and supply chain resilience, making it globally relevant as electrification accelerates.”

This funding milestone not only strengthens Vimag Labs’ position in the Indian deeptech ecosystem but also demonstrates the growing interest in sustainable EV solutions that bypass traditional rare earth dependencies.

Future Roadmap: Scaling Manufacturing and Commercialisation

Vimag Labs plans to use the funding to:

• Scale engineering and manufacturing operations

• Accelerate commercialisation of Virtual Magnet motor systems

• Expand industrial, mobility, and defence partnerships

• Continue innovation in software-defined electric motors

The startup is well-positioned to provide high-efficiency, environmentally friendly alternatives to conventional magnet-based electric motors, aligning with global trends toward sustainable and resilient electrification.

FAQs about Vimag Labs and Its Funding

1. How much funding did Vimag Labs raise in Series A?
   $5 million, led by Accel with participation from Chakra Growth Fund and Thinkuvate.

2. What is the Virtual Magnet motor technology?
   A magnet-free motor architecture using electronics and software to generate magnetic fields, reducing reliance on rare earth metals.

3. Who founded Vimag Labs?
   Manish Seth and Dr. Piyush Desai in September 2025.

4. What industries does Vimag Labs target?
   Electric vehicles, industrial machinery, HVAC, refrigeration, and defence applications.

5. What are the advantages of magnet-free motors?
   Lower cost volatility, reduced supply chain risks, environmentally friendly, and easier integration.

6. Which investors participated in the Series A round?
   Accel, Chakra Growth Fund, and Thinkuvate.

7. What is the technology readiness level of Vimag Labs’ motors?
   Technology Readiness Level 7, indicating near-commercial readiness.

8. Are Vimag Labs motors compatible with existing vehicle platforms?
   Yes, they are plug-and-play systems requiring minimal changes to manufacturing lines.

9. What will the startup do with the $5M funding?
   Scale manufacturing, accelerate commercialization, and expand partnerships.

10. Why is Vimag Labs’ technology globally relevant?
    It addresses cost, materials, and supply chain issues, critical as EV adoption and electrification grow worldwide.