Zypp Electric, an India-based tech-enabled electric vehicle (EV)-as-a-service platform, has announced the successful kick-off of its Series C funding round, raising $15 million.
Zypp Electric said in a statement on Monday that this round was led by Japanese major ENEOS.
The Series C1 funding comprises $15 million in equity closure as part of its ongoing $50 million round which is split into $40 million equity and $10 million in debt.
The equity funding saw participation from prominent investors including ENEOS along with participation from existing investors 9unicorns, IAN fund, venture catalysts, WFC & others.
The Series C funds will be utilized to expand Zypp’s fleet from 21,000 to 200,000 electric scooters and extend its services to 15 cities across India by 2026.
“Securing $15 million in Series C1 funding is a pivotal moment & strong validation amid the current funding environment for Zypp Electric,
“This investment propels our mission to revolutionize last mile delivery with sustainable EV solutions,” said Akash Gupta, Co-founder and Chief Executive Officer of Zypp Electric.
“We are eager to expand our fleet and enhance our tech platform, driving significant growth across India. Our commitment to reducing emissions and improving the lives of our driver partners and customers remains stronger than ever,
“These funds will be utilized to drive the company towards the full path of growth along with EBITDA profitability,” he added.
Meanwhile, ENEOS noted that in India, last-mile delivery market is skyrocketing especially within urban areas.
“Zypp is operating its business as a pioneer in the EV motorcycle delivery market with competitiveness and this is the reason why we made the decision to invest,” it added.
Founded in 2017, Zypp Electric’s business model is to make carbon-free last-mile delivery for local merchants from e-commerce giants to delivery executives and thereby reduce delivery cost and pollution on an asset-light model.
The company currently delivers groceries, medicines, food, and e-commerce packages from point A to point B through their fully automated IoT and artificial intelligence (AI)-enabled scooters which are low on maintenance and high on performance.
The technology tracks batteries that can be replaced at Zypp swapping stations which are installed at key touchpoints.
Currently, it has over 21,000+ and increasing Zypp EVs and pilots (delivery executives) working towards this mission.
The firm registered a revenue of INR 325CR in FY23-24 and launched operations in Mumbai and Hyderabad recently.
The firm has done 50 million+ shipment deliveries via electric vehicles from Jan 2023 to Mar 2024 period which equates to growing 76 Lakh trees on the planet Earth.
The company’s environmentally friendly initiatives have led to a significant reduction of 31 million kilograms of carbon emissions since the start of its operations.
Zypp Electric has forayed into the three-wheeler cargo business and will soon cross 1000 electric L5 loaders in its EV fleet.
The firm said it is poised to cater to a wider range of business needs while maximizing revenue streams and branding options on the E3W open for advertising.
Zypp’s key partners include BigBasket, Zepto, Flipkart, Myntra, Zomato, Swiggy, Blinkit, Uber, Porter, Rapido, 1MG, Delhivery, and Blue Dart.
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