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Zypp Electric raises $1 mn in debt funding, to deploy 1.5 lakh e-scooters by 2025

Zypp Electric raises $1 mn in debt funding, to deploy 1.5 lakh e-scooters by 2025

The start-up has now become the first EV logistics player to turn EBITDA positive while also recording a 5x revenue annually, Zypp claimed in a statement.

Zypp Electric has raised $1 million in debt funding from Northern Arc to expand its EV fleet services. Zypp Electric has raised $1 million in debt funding from Northern Arc to expand its EV fleet services.

Zypp Electric, a hyperlocal and EV-based last-mile delivery start-up, on Monday announced that it has raised $1 million in debt funding from Northern Arc to expand its EV fleet services. The company aims to use debt as a new expansion funnel along with current leasing strategy as they plan to deploy 1.5 lakh e-scooters in India by 2025.

The start-up has now become the first EV logistics player to turn EBITDA or earnings before interest, taxes, depreciation, and amortization,  positive while also recording a 5x revenue annually, Zypp claimed in a statement.

"As a growing start-up, the company has planned its cash-flow very tightly to meet the investor’s expectations and gain users’ trust," it further stated.

The latest funding comes almost 7 months after Zypp had raised around $7 million in a Series A round, co-led by 9Unicorns and Anthill Venture. The round also witnessed participation from family offices and early-stage funds; Nanavati Family Office, We Founder Circle, Silicon Valley based Riso Capital Fund, Dholakia Ventures along with existing investors Venture Catalysts and IAN Fund. Angel investors including Tarun Saraf of Warehouse Now, Rahul Khera of AWL logistics; Arjun Seth, Mark Joseph, both EV enthusiasts also invested in the latest round.

Akash Gupta, co-founder & CEO, Zypp Electric, said “Zypp turning profitable is proof that we are on the right path and utilising our resources efficiently in the right direction... Further, Northern Arc is a highly respectable financial services platform, and NBFC, with $1Mn debt raised from them, we’ve added another level of growth at much better IRRs as we accelerate closer to our vision of 100 per cent EVs in the last mile in the country”.

Bama Balakrishnan, COO, Northern Arc Capital, said “We are delighted to partner with Zypp Electric in their mission to make last-mile logistics emission-free by using the ecosystem of Electric Vehicles and EV-based technology. It aligns well with our focus on supporting businesses that accelerate the adoption of sustainable energy”.

Zypp is growing its user base on Zypp rentals at 300 per cent month-on-month with the plans of expansion and investment on more scooters under its fleet, the company said, adding that It currently has over 5,000 active EVs and is providing a sustainable solution to the gig workers in the country.

Zypp has already partnered with all industry leaders in the e-commerce segment across logistics, grocery, food, and pharma sectors - like Zomato, Swiggy, BigBasket, Amazon, Myntra, PharmEasy, Jiomart, Delhivery and Spencers to ensure sustainable last-mile delivery for the country.

Zypp Electric is India’s tech-enabled EV service platform. Founded in 2017 with a Mission Zero-Emission and to make India carbon-free by using an ecosystem of EV and EV-based technology, the company claims to make last-mile logistics sustainable and emission-free.

The company currently delivers groceries, medicines, food, and e-commerce packages from point A to point B through their fully automated IoT and AI-enabled scooters which are low on maintenance and high on performance. The technology tracks batteries that can be replaced at Zypp swapping stations which are installed at key touchpoints.

Published on: Apr 25, 2022, 2:33 PM IST
Posted by: Aparna Banerjea, Apr 25, 2022, 2:30 PM IST