Vimag Labs: Pioneering Magnet-Free Motor Technology to Power the Next Era of Electric Mobility

How a Bengaluru Deep-Tech Startup Secured $5M in Series A Funding to Revolutionize Electric Motors and Expand Global Reach

Electric motors are at the heart of electrification — from electric vehicles (EVs) to industrial machines and tomorrow’s autonomous systems. But the traditional reliance on rare earth magnets has created cost volatility, supply-chain risk, and environmental pressure for manufacturers worldwide. Vimag Labs is tackling these challenges head-on with magnet-free electric motor technology — and now has the funding to accelerate commercialization and market impact.

 Big News: $5 Million in Series A Funding Led by Accel

In January 2026, Vimag Labs closed a $5 million Series A funding round led by global venture capital firm Accel, with participation from Chakra Growth Fund and Thinkuvate. This investment marks one of the most notable deep-tech funding events this quarter and underscores strong investor confidence in the startup’s breakthrough technology.

The capital will be used to commercialize Vimag’s patented “Virtual Magnet” motor platform and scale engineering and manufacturing capabilities, laying the groundwork for broad deployment across automotive, industrial, and defence markets.

 A Groundbreaking Solution: Magnet-Free Electric Motors

At the core of Vimag Labs’ innovation is a software-defined motor architecture that eliminates the need for rare earth magnets — traditionally essential components in high-efficiency electric motors. Rather than relying on physical magnets, Vimag’s system uses advanced power electronics and control algorithms to generate magnetic fields electronically.

Why This Matters

• Cost Stability: Rare earth materials like neodymium and dysprosium are expensive and subject to geopolitical volatility — especially due to concentrated global supply chains.

• Supply-Chain Resilience: De-emphasizing rare earths reduces dependence on a small number of suppliers and enhances manufacturing independence.

• Broad Applicability: The technology is being targeted at two- and three-wheeler EVs initially, with future expansion into HVAC systems, industrial motors, refrigeration, and defence equipment.

 Founded by Industry Veterans

Vimag Labs was co-founded in September 2025 by Manish Seth (CEO) and Dr. Piyush Desai (Co-Founder). Both bring deep expertise in electric motor design, automotive product development, and electrification systems.

Under their leadership, the company has achieved technology readiness level (TRL) 7, meaning the motor platforms are undergoing real-world vehicle testing and partial commercialization, particularly in collaboration with original equipment manufacturers (OEMs) in India and overseas.

 Where Vimag Labs Fits in the Global Electrification Wave

Electric motors are indispensable across sectors, but conventional designs still depend on permanent magnet synchronous motors (PMSMs) that use rare earths for high efficiency — magnets whose prices and availability fluctuate with global trade and geopolitical conditions.

Vimag Labs’ architecture combines software control systems and power electronics to match or exceed the performance of conventional magnet-based motors, while addressing long-standing issues of cost, supply security, and scalability.

This innovation places Vimag Labs at the forefront of sustainable electrification solutions — not just for EVs, but across industrial and defence sectors that require robust, high-efficiency motors.

 Funding Deployment and Strategic Goals

The $5 million funding will be strategically deployed to:

• Scale commercialization of the patented Virtual Magnet motor platform across key industries.

• Expand engineering and manufacturing capacity, enabling rapid prototyping and large-scale production.

• Formulate go-to-market strategies for automotive, industrial, and defence applications.

Accel’s investment reflects a broader belief that new architectures will drive the next generation of electric drivetrains — particularly as global industries seek alternatives to rare earth dependencies.

 Competing in a Growing Ecosystem

The shift toward rare-earth-free motor technologies is gaining traction globally. Other startups — such as Bengaluru-based Chara Technologies, which recently raised funds to expand rare-earth-free motor manufacturing — illustrate that Vimag Labs is part of a larger movement toward sustainable, resilient electrification solutions.

This competitive landscape underscores how critical innovations in motor architecture are becoming, especially as the EV market expands and supply chains continue to evolve.

 Final Thoughts: A New Motor Era

With its $5 million Series A funding and a clear roadmap for commercialization, Vimag Labs is poised to make a significant impact on how electric motors are designed, manufactured, and deployed. By eliminating rare earth magnets without compromising performance, the company could redefine industry norms and influence global electrification strategies in the years ahead.

As EV adoption accelerates and industries demand more sustainable engineering solutions, Vimag’s technology could become a cornerstone for future mobility, industrial automation, and energy-efficient systems worldwide.