Indian electric vehicle startup, Zypp Electric, has secured significant investment from Japanese oil and energy giant ENEOS, paving the way for its expansion into Southeast Asia. This fresh capital infusion, amounting to $15 million, is a part of Zypp Electric’s Series C funding round, which is expected to total between $35 million and $40 million and conclude in the next six to eight weeks.
Zypp Electric, headquartered in Gurugram, has ambitious plans to enter 15 new markets over the next two years. Co-founder and CEO Akash Gupta revealed that the company aims to pilot its services in at least one Southeast Asian market early next year. Indonesia, Thailand, and the Philippines are under consideration, with Indonesia likely to be the first. Gupta stated, “There are different ways we are thinking and discussing that [Southeast Asia launch plan] with a few players. We’ll lay out that in the next two to three quarters.”
Additionally, Zypp Electric is in preliminary discussions about expanding into the Middle East, although specific details are yet to be disclosed.
Currently operating in major Indian cities such as Delhi, Bengaluru, Mumbai, and Hyderabad, Zypp Electric offers an EV-as-a-service platform primarily catering to e-commerce companies and gig workers. The service includes an app and software for fleet and delivery management, along with a fleet of electric two-wheelers. Gig economy workers, who can rent the e-bikes through various subscription models, generate about 28% of Zypp’s revenue. The rest comes from serving courier, e-commerce, food, and grocery delivery sectors, working with major companies like Amazon, BigBasket, DHL, Uber, Swiggy, Zepto, and Zomato. The platform facilitates around 5 million deliveries each month.
Zypp Electric is not just expanding geographically but also increasing its fleet size. Initially planning to expand to 30 Indian cities and grow its fleet to 200,000 electric two-wheelers by the end of 2025, the company has shifted its strategy to deepen its presence in existing markets instead. Currently, Zypp operates 15,000 electric two-wheelers in Delhi, 5,000 in Bengaluru, 1,000 in Mumbai, and 500 in Hyderabad.
The startup has also introduced electric three-wheelers in Delhi and Bengaluru, with plans to launch them in Mumbai soon. These three-wheelers now contribute 10% of Zypp’s total revenue. “The idea is to go deeper in these markets and, in parallel, launch a new market every quarter,” Gupta explained. Zypp Electric plans to expand its fleet to 50,000 electric two-wheelers over the next year and aims for a fleet of 200,000 within two and a half years.
Last year, Zypp Electric raised $25 million in a Series B round led by Taiwan’s battery-swapping company Gogoro. Other notable backers include Goodyear Ventures, Google for Startups, and Shell E4. Gupta mentioned that Zypp is already operationally profitable and is on track to become EBITA positive within the next six to eight months, with expectations to achieve profit after taxes in 12 to 14 months.