Zypp Electric raises $25 million in Series B Round led by Gogoro, will expand fleet to 2 lakh EVs | The Financial Express

Zypp Electric raises $25 million in Series B Round led by Gogoro, will expand fleet to 2 lakh EVs

The funds will be deployed across its operations as it aims to expand its fleet from 10,000 to 200,000 electric scooters and widen its footprint to 30 Indian cities by December 2025.

Zypp fleet 1

Zypp Electric, one of India’s largest electric vehicle-as-a-service platform has raised $25 million (Rs 206 crore) in a mix of equity ($20 million or Rs 165 crore) and debt ($5 million or Rs 41 crore) in series B funding led by Taiwan’s Gogoro, a global battery swapping and EV company.

Goodyear Ventures, 9Unicorns, WFC, Venture Catalysts, LetsVenture, IAN, Ivygrowth, Grip and other angel investors also participated in the round for fleet expansion from global impact fund IIX along with a large national bank participating the same. This the company says 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. 

With this, Zypp has now raised a total of $37.5 million (Rs 310 crore) ($30 million or Rs 248 crore in equity and $7.5 million or Rs 62 crore in debt or asset leasing) in total.

The funds will be deployed across its operations as it aims to expand its fleet from 10,000 to 200,000 electric scooters and widen its footprint to 30 Indian cities by December 2025. It will further work on improving its driver experience, expanding its EV hub infrastructure with Gogoro battery swapping, building sharp IOT and AI-enabled EV fleet management technology, and growing its operations team by hiring across technology and top-level positions. Overall funding will be spent mainly in team, technology and rest in growth & expansion across multiple markets and use-cases.

Akash Gupta, Co-founder & CEO, Zypp Electric said, “Zypp closing Series B in the current funding environment marks a validation of our team’s hardwork. We are excited to partner with Gogoro as its partner of growth as our tech EV ecosystem becomes complete with their amazing battery swapping and EV offerings for the Indian market. This funding round bolsters our confidence, team and technology efforts to expand at scale across many cities of India and then the world. Also, 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 company says its Mission Zero Emission aims to transform the last-mile delivery area by enabling major e-commerce, food, grocery delivery, and ride-sharing giants to go electric. In five years of its inception, Zypp says it has become the go-to and the largest partner for enabling EV-as-a-Service for the last-mile segment.

Currently, over 10,000 Zypp-affiliated gig workers are enrolled in the platform and has already completed 15 million deliveries on EVs for its large pool of top e-commerce partners while saving around 33 million KG C02. BigBasket, Zepto, Flipkart, Myntra, Zomato, Swiggy, Blinkit, Dunzo, Uber, Rapido, Jio Mart, PharmEasy, 1MG, Delhivery, Bluedart and many more, are a few key partners of Zypp.

Horace Luke, Founder & CEO, Gogoro said, “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. As a technology innovator and global leader in battery swapping, Gogoro is committed to advancing urban sustainable energy and transportation and supporting like-minded companies like Zypp Electric.”

Sandeep Mahajan, Managing Director, Goodyear India said, “Sustainable and efficient last-mile deliveries are key to address consumer demand across multiple verticals like prepared food, groceries and packages. Our Goodyear Ventures team is focused on investing in companies with a passion to advance mobility in a sustainable way and was impressed by the commitment of the Zypp team towards making this happen in India.”

Goodyear Ventures is a business unit within The Goodyear Tire & Rubber Company, focused on fuelling the future of mobility by supporting and investing in seed-to-growth-stage startups in emerging mobility technology.

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First published on: 08-02-2023 at 18:21 IST