EV startup Zypp Electric raises $25 million in funding led by Gogoro

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Zypp Electric, a business-to-business electric vehicle (EV) delivery service startup, has raised $25 million in debt and equity in a series B funding round led by Taiwan-based battery swapping major Gogoro.

New and existing investors such as Goodyear Ventures, 9Unicorns, WFC, LetsVenture, IAN, Ivygrowth, Grip, and other angels also participated in the round.

The round includes a $20 million equity round and a $5 million debt round for fleet expansion from global impact fund IIX and a large national bank.

This is also the first time global impact funds and Indian banks are participating in EV debt for any fleet operator or startup in the country, the company said in a statement.

"With the fund, Zypp aims to increase its fleet size from 10,000 to 200,000 (2 Lakhs) electric vehicles & expand its footprint to 30 cities in India by 2025. Further, the company will improve its driver experience, expanding its EV hub infrastructure, building sharp EV Fleet management technology, and growing its operations team by hiring across tech and top-level positions, " it said.

Zypp Electric, co-founded by Akash Gupta and Rashi Agarwal in 2017, offers fleets of electric scooters for rent to its business clients, including ecommerce companies such as Flipkart.

"This is good for the entire EV industry where large pools of global capital have now started pouring in. We at Zypp look to deploy 200,000 vehicles with plans afoot to be the largest EV services company in the world to reach our Mission Zero Emission. The impact that we’re creating in the lives of our driver partners is what brings sheer joy in our entire mission and we plan to make Zypp the most loved platform for delivery partners & our customers," Gupta said.

Zypp is currently associated with all major e-commerce, food, grocery, and delivery players, including Zomato, Swiggy, Flipkart, Myntra, Zepto, Blinkit, Dunzo, BigBasket, Uber, Rapido, PharmEasy, 1MG, Delhivery, Jio Mart, Bluedart, and more than 50 brands.

Gogoro and Zypp Electric announced a strategic partnership in November 2022 to help companies focused on accelerating the urban shift of logistics fleets and last mile deliveries to electric via battery swapping.

"Zypp Electric has taken a key leadership position in the sustainable transformation of India's fleet and last mile delivery industry but the opportunity is immense and with this new funding it will be able to expand its capabilities and market impact," said Horace Luke, founder and CEO, Gogoro.

In September 2021, the company raised around $7 million in its Series A round, which was co-led by 9Unicorns and Anthill Ventures.