Zypp Electric, an EV-as-a-service platform, announced on Monday that it secured $15 million in funding from the Japanese company ENEOS. Additionally, the company noted that its current investors, including 9unicorns, Venture Catalysts, WFC, and others, participated in this funding round.
In a statement, the company revealed that the series C funding consists of a $15 million equity closure, which is part of its ongoing $50 million round. Within this $50 million round, $40 million includes equity, while $10 million is in debt.
Akash Gupta, Co-founder and CEO of Zypp Electric, said:
Securing $15 million in Series C1 funding is a pivotal moment and strong validation amid the current funding environment for Zypp Electric. This investment propels our mission to revolutionise last-mile delivery with sustainable EV solutions.
The company plans to use the funding to expand its fleet of electric scooters from 21,000 to 200,000. Furthermore, it aims to extend its service reach to 15 cities by 2026.
ENEOS stated:
In India, the 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.
About Zypp Electric
Established in 2017, the company’s primary goal is to ensure that last-mile logistics are sustainable and free from emissions. Their business model focuses on providing carbon-neutral last-mile delivery services for local merchants. They achieve this by connecting these merchants with e-commerce companies and delivery personnel, aiming to reduce delivery expenses and pollution through an asset-light model.
Zypp serves e-commerce giants and food and grocery delivery platforms, including Swiggy, Zomato, and Amazon. Additionally, it operates in major cities such as Delhi, Mumbai, Hyderabad, and Bengaluru.
The company stated that its technology monitors batteries that are interchangeable at Zypp swapping stations, strategically placed at crucial locations. Additionally, they mentioned that eco-friendly EV services contribute to lowering the cost per delivery.
Zypp Electric disclosed a revenue of Rs 325 crore for FY2023-24 and recently expanded its operations to Mumbai and Hyderabad. Also, the company revealed that it has successfully conducted more than 50 million shipment deliveries using electric vehicles between January 2023 and March 2024.
Recently, the company expanded its operations into the three-wheeler cargo business and aims to surpass 1,000 electric L5 loaders in its EV fleet soon.
Wrapping Up
In February 2023, the startup secured $25 million in a series B funding round, with Gogoro, a Taiwanese battery-swapping service provider, taking the lead.
Nonetheless, the recent investment from ENEOS will support Zypp in advancing sustainable EV solutions for the last-mile delivery sector.
