Zypp Electric, an EV-as-a-service platform, has secured $15 million in funding from Japanese company ENEOS. This investment is part of Zypp’s ongoing Series C funding round, which aims to raise a total of $50 million, including $40 million in equity and $10 million in debt.
Akash Gupta, Co-founder and CEO of Zypp Electric, announced that the new funds will be used to expand their fleet of electric scooters from 21,000 to 200,000 and extend their services to 15 cities across India by 2026. Gupta emphasized that the investment will boost Zypp’s efforts in the last-mile delivery space with sustainable electric vehicle (EV) solutions. The funds will also support Zypp’s growth and profitability goals, specifically aiming for EBITDA (earnings before interest, taxes, depreciation, and amortization) profitability.
In addition to expanding its scooter fleet, Zypp Electric has entered the three-wheeler cargo business. The company plans to soon surpass 1,000 electric L5 loaders, catering to a broader range of business needs and maximizing revenue streams.
Zypp Electric reported a revenue of Rs 325 crore for the fiscal year 2023-24 and recently launched operations in Mumbai and Hyderabad. The company aims to capitalize on the rapidly growing last-mile delivery market in urban areas of India.
ENEOS, the investor, highlighted Zypp’s pioneering role in the EV motorcycle delivery market as a key reason for their investment. They believe Zypp’s competitiveness and innovative approach will drive significant growth in the industry.
This investment round also saw participation from existing investors, including 9unicorns, IAN Fund, Venture Catalysts, and WFC.
