Startup Zypp Electric, is set to take its electric vehicle (EV) delivery service to the next level after securing $25 million in Series B funding.
The funding will allow Zypp to expand its fleet and improve its overall driver experience with the aid of Gogoro battery swapping technology, IoT- and AI-enabled EV fleet management and the hiring of new talent across its operations team.
The round, which was led by Taiwanese battery swapping company, Gogoro, saw a mix of equity and debt investment pour in from new and existing investors including Goodyear Ventures, 9Unicorns, Venture Catalysts and more.
“This is a big validation for the entire EV industry,” said Akash Gupta, Co-founder and CEO of Zypp Electric. “We’ve always been focused on profitability and solutions, and this funding is a large validation as we have raised the funds at close to over 5x of our last valuation.”
With the new funds, Zypp plans to improve its driver experience, expand its EV hub infrastructure, and build IoT and AI-enabled EV fleet management technology. The company also plans to grow its operations team by hiring across technology and top-level positions.
Zypp Electric to bring its innovative and eco-friendly electric vehicles to the masses
“Our focus is to get the right vehicles on the ground, and since we don’t use equity capital in deploying these assets, it’s always good to take low-cost debt or to deploy more fleets,” said Akash.
The company aims to expand its fleet from 10,000 to 200,000 electric scooters and widen its footprint from six cities to 30 Indian cities by December 2025. In 2023, Zypp plans to grow to 12 cities. About 40% of the funds will be used for launching hubs in new cities and establishing teams, 10% for marketing, and the remaining 50% will be invested in team and technology.
“We are creating superlative EV tech involving IoT, AI, and ML—all talking to each other and giving the right insights to the drivers, bikes and the swapping networks,” said Akash.
In November 2022, Gogoro and Zypp Electric announced a strategic partnership to accelerate the electric transformation of fleets and last-mile deliveries in India. Under the pilot project, they are deploying 100 battery-swapping-enabled electric scooters in Delhi-NCR and six battery-swapping stations at Zypp Electric hubs. The latest funding round will allow Zypp to expand its capabilities and market impact.
“Sustainable and efficient last-mile deliveries are key to addressing consumer demand across multiple verticals,” said Sandeep Mahajan, Managing Director of Goodyear India. “Our Goodyear Ventures team is focused on investing in companies committed to advancing mobility in a sustainable way and was impressed by the commitment of the Zypp team.”
Early this month, Zypp Electric launched ZyppDash, an EV fleet management dashboard for businesses, to simplify the process of requesting and managing fleets.