Delhi NCR-based electric vehicle (EV) fleet management startup Zypp Electric has successfully raised INR 115.7 crore or $14 million in a recent investment round led by Japanese energy conglomerate ENEOS. The funding comes from ENEOS Oil & Energy Pte Ltd, a subsidiary of the group, marking ENEOS’ inaugural investment in an Indian startup.
Funding Details
According to regulatory filings, Zypp Electric will issue 1,372 Series C compulsory convertible preference shares to ENEOS as part of the capital infusion. This investment appears to be a component of a larger Series C funding round being raised by Zypp.
Valuation Soars
The startup’s fresh funding round values it at approximately $280 million, nearly doubling its previous valuation of $175 million from its preceding funding round.
Company Response
Despite attempts to seek clarification from Zypp Electric, the company did not provide a response at the time of publishing this report.
Previous Funding Reports
Earlier reports from the Economic Times suggested that Zypp Electric was in the process of raising around $40 million in Series C funding, with Silicon Valley-based Tribe Capital leading the investment.
Company Overview
Founded in 2017 by Akash Gupta and Rashi Agarwal, Zypp Electric specializes in providing electric scooters for last-mile deliveries to local merchants and e-commerce companies. The startup boasts a notable clientele including Swiggy, Flipkart, Zomato, Uber, and Amazon, among others.
Expansion and Growth
Zypp Electric operates an electric fleet of over 20,000 EV scooters across Delhi NCR, Bengaluru, Hyderabad, and Mumbai. In addition to its two-wheeler segment, the company has expanded into the three-wheeler cargo business, boasting a fleet of over 750 three-wheeler EVs.
Financial Performance
In the fiscal year 2022-23 (FY23), Zypp Electric reported a significant five-fold increase in revenue from operations, reaching INR 109 crore, compared to INR 21.4 crore in the previous year. However, the startup’s net losses also doubled to INR 40.5 crore in FY23, up from INR 15.2 crore.
Future Prospects
Despite the lack of disclosed audited financials for FY24, Zypp Electric claims to have witnessed a three-fold increase in revenue. To date, the startup has raised approximately $75 million across multiple funding rounds, with backing from investors such as Gogoro, Venture Catalysts, LetsVenture, and Ivy Growth.
Competitors and Market Landscape
Zypp Electric faces competition from several players in the EV fleet management space, including MoEving, Baaz Bikes, Yulu, Zen Mobility, and Euler Motors, among others.
