Zypp Electric Begins Series C With $15M Led By ENEOS

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The recently acquired funding will play a crucial role in increasing Zypp’s fleet from 21,000 to 200,000 electric scooters and expanding its operations to 15 Indian cities by 2026.

Zypp Electric, a company that provides electric vehicles as a service through its technology-driven platform, recently initiated its Series C funding round, successfully raising USD 15 million. This round, prominently led by the Japanese corporation ENEOS, signifies a major achievement for Zypp. The Series C1 portion of the funding includes USD 15 million in equity, forming part of a larger USD 50 million financing round, which is split into USD 40 million of equity and USD 10 million of debt.

Several key investors have actively participated in this round, including ENEOS, 9unicorns, IAN Fund, Venture Catalysts, WFC, and others. The funds obtained are set to significantly bolster Zypp’s capabilities, specifically aiming to scale the company’s fleet from 21,000 to 200,000 electric scooters and expand its service reach to 15 cities across India by the year 2026.

Akash Gupta, Co-founder & CEO of Zypp Electric, expressed his enthusiasm about the company’s recent financial boost, stating that the acquisition of USD 15 million in Series C1 funding is a significant and validating milestone in the current investment landscape for Zypp Electric. He emphasized that this funding will propel the company’s ambition to revolutionize last-mile delivery with environmentally friendly electric vehicle solutions. Gupta highlighted plans to expand the fleet and enhance the technological infrastructure, aiming for considerable growth across India. He reiterated the company’s strong commitment to reducing carbon emissions and improving the well-being of its drivers and customers. The funds will be utilized to guide the company towards a comprehensive growth path while targeting EBITDA profitability.

Zypp has recently declared operational profitability, with a reported revenue of Rs 325 crore for the fiscal year 2023-24. The company has started operations in Mumbai and Hyderabad, with its existing fleet comprising 21,000 two-wheelers and about 800 three-wheelers. Since January 2023, Zypp Electric has completed more than 50 million shipments via electric vehicles, an achievement equivalent to the environmental impact of planting 7.6 million trees. This has contributed to a substantial reduction of 31 million kilograms in carbon emissions since the inception of the company.

In a strategic expansion move, Zypp Electric has ventured into the three-wheeler cargo sector and is progressing towards adding over 1,000 electric L5 loaders to its fleet. This development broadens Zypp’s service spectrum, enhancing revenue opportunities and providing branding possibilities on its E3W vehicles. Major partners include leading companies such as BigBasket, Zepto, Flipkart, Myntra, Zomato, Swiggy, Blinkit, Uber, Porter, Rapido, 1MG, Delhivery, and Blue Dart.

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