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Deeptech startup Vimag Labs has secured $5 Mn (about INR 46 Cr) in its Series A round led by Accel, with participation from Chakra Growth Fund and Thinkuvate.

Vimag Labs, which develops advanced electric motor and power electronics solutions, said it will deploy the funds toward commercialising its patented motor platform.

Additionally, the startup plans to expand its engineering and manufacturing capabilities using the funds and formulate go-to-market strategies for its products across the automotive, defense, and industrial sectors.

Founded in 2025 by Manish Seth and Piyush Desai, Bengaluru-based Vimag Labs has patented a magnet-free virtual magnet synchronous motor platform for application in EVs, industrial, defense and energy systems.

While permanent magnet synchronous motors utilise rare earth materials, which are embedded in the rotor, Vimag Labs has eliminated the need for rare earth materials by replacing the magnets with a software-based virtual magnet system. This allows cost stabilisation while overcoming supply chain restraints and delivering a better motor performance.

The startup has also built an algorithmic architecture to optimise motor performance in real time and utilises wireless energy transmission that doesn’t require physical connections.

The startup, which operates under the Volektra brand, also has operations and development centres in Germany, the US and Poland.

It is pertinent to note that rare earth materials, which are used in permanent motors, are prone to cost volatility and supply chain constraints, which can be exacerbated by global events like the pandemic or geopolitical tensions. Restrictions imposed by China on exports of rare earth materials last year caused a shortage of permanent magnets, impacting the domestic EV industry.

As a result, many Indian startups are working on innovative solutions to make rare earth-free motors. Last year, Ola Electric said it developed rare-earth-free motors.

Investors are also backing startups working on innovative solutions to tap the opportunities it presents. In November last year, EV motor manufacturer Naxatra Labs raised $3 Mn in a pre-Series A round led by Zerodha’s Rainmatter. Prior to that, Chara Technologies raised $6 Mn in October to increase its manufacturing and development capabilities.

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