EV startup Zypp Electric secures $15 million to expand its EV rental service to Southeast Asia next year. With plans to enter 15 markets in the next two years, Zypp Electric will start with at least one Southeast Asian market in early 2025. The recent $15 million funding, led by ENEOS, is part of Zypp Electric’s Series C round, aiming for a total of $35 to $40 million within the next six to eight weeks.
Zypp Electric’s existing investors, including 9unicorns, IAN fund, and Venture Catalysts, joined the funding round. With this investment, the company aims to grow its fleet of electric scooters from 21,000 to 200,000 and expand its services to 15 cities by 2026, according to Zypp Electric’s CEO Akash Gupta.
EV Startup Zypp Electric Secures Funds to Expand
EV startup Zypp Electric secured a $15 million Series C funding boost from ENEOS to expand. CEO Akash Gupta revealed plans to enhance the company’s electric vehicle fleet from 22,000 to over 50,000 within the year, focusing on last-mile delivery solutions.
EV startup Zypp Electric plans to expand to Southeast Asia, particularly Indonesia, Thailand, and the Philippines, known for their high two-wheeler usage and delivery demand. Indonesia is set to kick off the expansion. Gupta hinted at early talks about entering the Middle Eastern market but kept details under wraps. The startup is strategizing with potential partners and expects to unveil further plans in the coming quarters.
Zypp Electric: Driving Towards Greener Deliveries
Zypp Electric, known for serving big names like Swiggy, Zomato, Amazon, Delhivery, and PharmEasy, operates in major Indian cities like Delhi, Mumbai, Hyderabad, and Bengaluru. With a revenue of Rs 325 crore in FY24, the company has delivered 50 million items using electric vehicles from January 2023 to March 2024.
Currently, Zypp Electric has 15,000 electric scooters in Delhi, 5,000 in Bengaluru, 1,000 in Mumbai, and 500 in Hyderabad. CEO Gupta plans to deepen its presence in these markets by introducing a new market every quarter. The company aims to increase its fleet from 22,000 to 50,000 electric scooters within a year and ultimately expand to 200,000 over the next two and a half years.
In February last year, Zypp Electric secured $25 million in Series B funding led by Gogoro, a Taiwanese battery-swapping company. Other notable backers include Goodyear Ventures, Google for Startups, and Shell E4. Gupta mentioned that Zypp Electric is already making operational profits and expects to achieve EBITA positivity in six to eight months, followed by overall profitability in 12 to 14 months.
CEO Akash Gupta emphasized the company’s dedication to reducing emissions and enhancing the lives of both drivers and customers. The newly acquired funds will fuel Zypp Electric’s growth journey and pave the way toward achieving EBITDA profitability.
Zypp Electric Leading the Charge in Last-Mile Delivery
Zypp Electric, founded in 2017 by Gupta, Rashi Agarwal, and Tushar Mehta, uses smart scooters powered by IoT and AI to deliver groceries, medicines, food, and packages. The company stands out in India’s booming last-mile delivery market, particularly in urban areas, pioneering EV motorcycle delivery services.
An ENEOS spokesperson explained their investment decision, citing Zypp’s competitiveness in the EV delivery market. In February 2023, the startup raised $25 million in Series B funding, with Gogoro, a Taiwanese battery-swapping service provider, leading the round.
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