Zypp Electric, an electric vehicle (EV) startup, has raised $15 million in Series C funding from Japan’s ENEOS Corporation to expand its fleet and services, boost revenue, and target new Southeast Asian cities. Existing investors 9unicorns, IAN Fund, and Venture Catalysts also participated. Zypp Electric plans to use the funds to expand its fleet from 21,000 to 200,000 electric scooters and extend services to 15 cities by 2026.
Akash Gupta, co-founder and CEO of Zypp Electric, shared that the company aims to enter new geographies, including Southeast Asian cities. Zypp Electric already serves e-commerce and food delivery giants such as Swiggy, Zomato, Amazon, Delhivery, and PharmEasy in the National Capital Region (NCR), Mumbai, Hyderabad, and Bengaluru.
“Securing $15 million in Series C funding from ENEOS Corporation furthers our mission to transform last-mile delivery through sustainable electric vehicle solutions. We will be utilizing the funds to increase the fleet from 22,000 to more than 50,000 EVs this year, enhancing the growth of our technology platform in India and supporting our path to EBITDA profitability,” said Gupta.
Zypp Electric’s Financial Milestones and New Ventures
In FY24, Zypp Electric reported a revenue of INR 325 crore and completed 50 million deliveries through its EVs. The company recently ventured into the three-wheeler cargo business and is set to surpass 1,000 electric L5 loaders in its fleet. Founded in 2017 by Akash Gupta, Rashi Agarwal, and Tushar Mehta, Zypp Electric leverages IoT and AI-enabled scooters for deliveries.
“Our commitment to reducing emissions and improving the lives of our driver partners and customers remains stronger than ever. These funds will drive the company towards the full growth path along with EBITDA profitability,” Gupta said.
In February 2023, Zypp Electric raised $25 million in a Series B round led by Taiwanese battery-swapping service provider Gogoro. The company secured $15 million from ENEOS Corporation in its Series C round. Zypp Electric’s post-money valuation is approximately INR 2,253 crore ($271 million).
Employee Stock Ownership Plan
Zypp Electric announced its first Employee Stock Ownership Plan (ESOP) buyback for 15 employees, allocating around INR 1.5 crore. This move reflects the company’s commitment to rewarding its team. Zypp Electric’s revenue from operations surged fivefold to INR 112 crore in FY23, though it incurred losses of INR 40.5 crore. The company claimed operational profitability in FY24, with audited results pending.
Zypp Electric’s journey from its 2017 inception to becoming a key player in the EV-as-a-service market highlights its potential to revolutionize urban mobility.
“In India, the last-mile delivery market is skyrocketing, especially in urban areas. Zypp is operating its business as a pioneer in the EV motorcycle delivery market with competitiveness, which is why we decided to invest,” an ENEOS Corporation spokesperson said.
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