Zypp Electric to deploy 2 lakh EVs; needs $300M to support growth

Electric mobility services provider Zypp Electric aims to deploy two lakh electric vehicles in its fleet over the next three years and requires up to $300 million to support this growth over the next 3-4 years.

Akash Gupta, CEO and Co-founder of Zypp Electric, said in an interview with PTI that the company is targeting a revenue of Rs 500 crore this financial year—a significant increase from the Rs 125 crore it generated in FY23.

Zypp Electric, which currently operates in Delhi-NCR and Bengaluru, also plans to expand its services to cities including Mumbai, Pune, and Hyderabad.

The company is focused on the B2B segment, serving ecommerce and food/grocery delivery players like Swiggy, Zomato, Amazon, Myntra, Delhivery, Pharmeasy, and others.

In February 2023, Zypp Electric raised $25 million in a Series B funding round led by Gogoro, a battery-swapping company based in Taiwan.

The funding included a combination of equity and debt financing, with $20 million coming from new and existing investors such as Goodyear Ventures, 9Unicorns, WFC, Venture Catalysts, LetsVenture, IAN, IVY Growth, Grip, and other angel investors.

Additionally, a debt investment of $5 million was secured from IIX, a global impact fund, among others.

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From B2C mobility to last-mile delivery service, how Zypp Electric found its niche

Zypp Electric's revenue for the fiscal year 2023 reached Rs 125 crore, with the growth attributed to the company's partnerships with logistics firms like Blue Dart, DTDC, and Ecom Express, along with popular delivery giants.

Founded in 2017 by Akash Gupta, Tushar Mehta, and Rashi Agarwal, the company initially started as a bicycle rental platform. In 2018, it expanded its services to include e-scooter rentals, with a particular focus on last-mile delivery.

Its commercial delivery fleet segment offers electric two-wheelers along with drivers. The decision to deploy EV two-wheeler fleets was driven by the widespread use of scooters and bikes in India for last-mile delivery.

In an earlier interview with YourStory, Gupta said, “There’s always a lot of churn in the delivery partner segment… People jump from one company to another very quickly, which sometimes can leave companies understaffed. We realised that providing a delivery executive, along with an e-bike was more valuable for a company like Swiggy than just selling them the bike."