Zypp Electric said it has raised $25 million in Series B funding round led by Taiwanese battery-swapping service provider Gogoro, as the Indian EV startup looks to expand to new cities and boost its fleet size.
CHENNAI : Zip Electric on Wednesday said it has raised $25 million in Series B funding round led by Taiwanese battery-swapping service provider Gogoro Inc, as the Indian electric vehicle startup looks to expand to new cities and boost its fleet size. wants to
The funding round marks Gogoro's latest attempt to expand in India, where EVs are getting a mainstream push, partnering with the country's top bike maker Hero MotoCorp and the state of Maharashtra.
"Electric vehicles are the expectation of the entire (delivery) industry," Zypp chief executive Akash Gupta told Reuters.
The startup, which provides EVs for last-mile delivery to online stores, plans to use the funding to increase its fleet size from 10,000 to 200,000 EVs by 2025, and across 30 Indian cities, including Chennai and Mumbai. Expanding to cities, currently with six.
Delivery companies in India are moving towards clean mobility, with Amazon aiming to have 10,000 EVs for delivery by 2025, while Walmart's Flipkart plans to have 25,000 EVs by 2030.
Several new and existing investors including Goodyear Ventures, 9Unicorns and WFC of Goodyear Tire & Rubber participated in the funding round, which included $20 million in equity and $5 million in debt. Zypp said approximately $12 million of the equity was from Gogoro.
Zypp is now valued at nearly six times its valuation of about $30 million in the previous round, Gupta said, adding that it is recording $20 million in annual recurring revenue and growing 20% to 25% month-over-month.
Zypp, founded in 2017, has partnered with online shopping platforms Flipkart and Myntra, food delivery service providers Zomato and Swiggy, and grocery players Zepto and Blinkit.
It aims to scale up its operations by hiring technology and top-level positions at a time when some Indian startups are laying off hundreds of employees to cut costs.
Zypp said it looks to turn profitable in the next 12-18 months.
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