Accel leads Series A as Bengaluru deeptech startup pushes to commercialize its magnet-free motor platform for EVs, defense, and industry.
Vimag Labs, a Bengaluru-based deeptech startup, has raised $5 Mn (INR 46 Cr) in a Series A round led by Accel, with participation from Chakra Growth Fund and Thinkuvate. The capital will accelerate commercialization of its patented magnet-free motor platform, a breakthrough aimed at solving one of the EV industry’s most pressing challenges: dependence on rare earth materials.
Reinventing the EV Motor—Without Magnets
Founded in 2025 by Manish Seth and Piyush Desai, Vimag Labs has developed a virtual magnet synchronous motor (VMSM) that replaces traditional permanent magnets with a software-based virtual magnet system.
- Standard permanent magnet synchronous motors (PMSMs) rely on rare earth elements embedded in rotors.
- Vimag’s approach eliminates these materials, cutting costs, easing supply chains, and enhancing performance.
“Global dependence on rare earths is a ticking time bomb,” said an EV analyst. “Startups like Vimag are doing the hard engineering to defuse it.”
So how does Vimag do it? The startup has built a proprietary algorithmic architecture to optimize motor performance in real-time and also incorporates wireless energy transmission — removing the need for physical connectors.
Target Markets: EV, Defense, Industry
Vimag plans to deploy the funds to:
- Scale manufacturing and engineering operations.
- Build go-to-market (GTM) strategies across EV, defense, and industrial sectors.
- Strengthen its international footprint, including development hubs in Germany, the US, and Poland.
Why does it matter? Geopolitical volatility has put the rare earth supply chain under pressure. China’s export curbs on key materials last year disrupted EV production lines across India, spotlighting the urgent need for magnet-independent solutions.
The Bigger Trend: India’s Magnet-Free Motor Push
Vimag isn’t alone in the race. The past year has seen a flurry of funding in rare earth-free motor innovation:
- Ola Electric announced its own rare-earth-free motors.
- Naxatra Labs secured $3 Mn in a Rainmatter-led round.
- Chara Technologies raised $6 Mn to expand development.
Vimag’s edge lies in its patented tech stack and early global positioning.
The question now: Can it scale fast enough to ride the EV demand wave?
TL;DR
Vimag Labs raised $5 Mn led by Accel to commercialize its patented magnet-free motor platform. The startup replaces rare earth magnets with virtual magnet tech, targeting EV, defense, and industrial markets amid growing global supply chain pressures.
AI summary
- Vimag Labs raised $5 Mn Series A led by Accel
- Builds magnet-free virtual motor platform for EVs
- Plans expansion in defense, industrial sectors
- Uses algorithmic architecture and wireless energy transfer
- Addresses rare earth shortages hurting EV supply chains
