Deep-tech startup Vimag Labs has raised $5 million in a funding round led by Accel, with participation from Chakra Growth Fund and Thinkuvate. The Bengaluru-based company will use the capital to accelerate the commercial rollout of its patented virtual magnet synchronous motor platform and to strengthen its engineering and manufacturing capabilities, according to a press release.
Founded in September 2025 by Manish Seth and Piyush Desai, Vimag Labs is developing magnet-free electric motor technology aimed at reducing dependence on rare earth materials. The startup’s solution targets applications across electric vehicles, industrial machinery, and HVAC systems, addressing challenges such as cost volatility, supply-chain risks, and sustainability concerns.
Vimag Labs said its motors are largely software-defined, using advanced power electronics and control software to electronically generate magnetic fields within the motor. This approach allows the system to deliver the performance benefits of magnet-based motors without relying on rare earth metals. The company is initially focusing on commercialising the technology for two- and three-wheeler electric vehicles, while also exploring applications in areas such as HVAC, refrigeration, and defence.
According to the company, its technology is currently undergoing real-world vehicle testing and has reached technology readiness level 7. Vimag Labs has already begun commercialising parts of its electronics stack and is working with several large original equipment manufacturers in India and international markets.
The solution is designed as a plug-and-play, drop-in system for automakers, requiring no significant modifications to existing vehicle platforms or manufacturing processes.
Vimag Labs said the funding will also support go-to-market efforts across automotive, industrial, and defence sectors. The founding team brings deep domain expertise, with Seth having more than two decades of experience in EV technology and automotive product development, and Desai having over 30 years of experience in electric motor and drive systems along with more than 50 patents to his name.
