Zypp Electric to deploy 200K vehicles in its fleet, invest $ 300 mn

Zypp Electric, the emerging electric mobility services provider, aims to deploy two lakh vehicles in its fleet in the next three years and will need up to US$300 million to fund its expansion, according to the company’s CEO and co-founder Akash Gupta.

The company, which plans to enter new cities like Mumbai, Pune and Hyderabad, is targeting revenue of Rs 500 crore this year, up from Rs 125 crore last year.

“For us, expansion is because today we have 13,500 (vehicles in the fleet). How quickly we can get to 2,00,000 is what we have to strive for. We’re doing these partnerships, we’re building that technology, we’re building the R&D team This and doing that in multiple markets,” Gupta told PTI. When asked about the timetable for reaching a fleet size of 2 lakh, he said it would be within three years.

Zypp, which offers e-commerce and food/grocery delivery services like Swiggy, Zomato, Amazon, Myntra, Delhivery, and PharmEasy, among others, is currently in Delhi NCR and Bengaluru.

“We are expanding into more markets. We plan to go to Mumbai, then Pune, Hyderabad and many more markets that have potential,” he added.

When asked about financing, Gupta said for the time being, the company is not out to raise funds as it recently closed Series B financing.

However, he said, “This business is highly scalable and will need, over the next three to four years, about US$250-300 million in capital.”

Asked if the company would go to another fundraiser, he said: “…we will be back in the market when the time is right, but for now the focus is on using the capital we have raised to put it right to use, expand and offer value in more from the markets.”

In February this year, the company announced it had raised $25 million in a Series B funding round led by Taiwanese battery replacement service provider Gogoro.

On the revenue front, Gupta said in FY23, the company registered Rs. 125 crore and “this year, we are targeting around Rs. 500 crore.”

On whether Zypp will look beyond basic electric two-wheelers to expand its last-mile delivery fleet, he said: “We’re open to all kinds of form factors. We already have a few (electric) three-wheelers, about 250 we’re working on. The more demand there is We can add more formalities to our business.”