Zypp Electric, a start-up providing fully-electric solutions for delivery services, is aiming to expand its fleet to 2 lakh vehicles within the next three years; an exercise that will require approximately $300 million in funding.
Also Read: Mercedes-Benz EQB 350 4Matic Launched At Rs. 77.50 Lakh; Replaces EQB 300
Zypp Electric currently operates in Delhi-NCR and Bengaluru, working with e-commerce and food/grocery delivery players such as Swiggy, Zomato, Amazon, Myntra, Delhivery and PharmEasy. CEO and co-founder Akash Gupta revealed the company's plans to expand into more markets, including Mumbai, Pune and Hyderabad.
Also Read: Kabira Mobility KM 5000 Teased; Will Get 188 kmph Top Speed
"For us, the expansion is that today, we have 13,500 vehicles in the fleet. How fast we can get to 200,000 is what we have to go for. We are doing those partnerships, we are building that tech, we are building that team of R&D and to do this in multiple markets", Gupta told PTI.
Zypp plans to expand into other cities, including Mumbai, Pune and Hyderabad.
Regarding funding, Gupta stated that the company recently closed its series B funding and is not currently seeking additional funds. However, he acknowledged that over the next three to four years, Zypp Electric would require approximately $250-300 million in capital due to the highly scalable nature of the business.
While Zypp Electric raised $25 million in a series B funding round led by Taiwanese battery-swapping service provider Gogoro in February, Gupta expressed openness to future fundraising opportunities when the time is right. He emphasised the current focus is on utilising the capital raised to expand the business and demonstrate its value in more markets.
In terms of revenue, Gupta said that Zypp Electric achieved Rs 125 crore in the previous fiscal year and is targeting approximately Rs 500 crore this year. When asked about expanding its last-mile delivery fleet beyond electric two-wheelers, Gupta told PTI that, “We are open to all kinds of form factors. We already have a few electric three-wheelers, about 250 that we are operating. Whenever there's more demand, we can add more form factors to our business.”
