Zypp Electric raises $15 million in ongoing series C round led by ENEOS

(From left) Zypp co-founder and COO Tushar-Mehta, co-founder and CEO Akash Gupta and co-founder and CBO Rashi Agarwal.

Electric vehicle (EV) maker Zypp Electric has raised $15 million in its ongoing Series C round led by Japanese energy solutions major ENEOS Corporation. Existing investors 9unicorns, IAN fund, and Venture Catalysts also participated in the round.

The firm plans to use the funds to expand its fleet from 21,000 to 200,000 electric scooters and extend services to 15 cities by 2026, Akash Gupta, cofounder and CEO of Zypp Electric to Moneycontrol on May 27.  

Gupta also said that the firm is looking to expand to other geographies including cities in SouthEast Asia.

"Securing $15 million in Series C funding from ENEOS furthers our mission to transform last-mile delivery through sustainable electric vehicle solutions...We will be utilising the funds to increase the fleet from 22,000 to more than 50,000 EVs within this year along with enhancing the growth of our technology platform in India and supporting our path to EBITDA profitability," told Gupta.

Zypp, which serves e-commerce and food and grocery delivery players such as Swiggy, Zomato, Amazon, Delhivery and PharmEasy, operates in the National Capital Region (NCR), which includes Delhi, and in Mumbai, Hyderabad and Bengaluru.

The firm clocked a revenue of Rs 325 crore in FY24. It has made 50 million deliveries through electric vehicles from January 2023 to March 2024. The company recently forayed into the three-wheeler cargo business and would soon cross 1,000 electric L5 loaders in its EV fleet, the company said.

"Our commitment to reducing emissions and improving the lives of our driver partners and customers remains stronger than ever. These funds will be utilised to drive the company towards the full path of growth along with EBITDA profitability," Gupta said.

Founded in 2017 by Gupta, Rashi Agarwal and Tushar Mehta, Zypp Electric delivers groceries, medicines, food, and packages through IoT and AI-enabled scooters.

“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," an ENEOS spokesperson said.

In February 2023, the startup raised $25 million in a series B funding round led by Taiwanese battery-swapping service provider Gogoro.