Electric vehicles (EV) and logistics start-up Zypp Electric has raised $25 million in Series B round of funding led by Taiwan-based battery management system firm, Gogoro Global. The round also saw participation from its existing investors including the likes of Goodyear Ventures, 9Unicorns, WFC, LetsVenture, IAN, Ivygrowth, Grip and other angel investors.
While Zypp’s co-founder and CEO, Akash Gupta revealed that the valuation at which the funds have been raised is 5.5x times more than the previous one. In addition, $20 million have been raised in equity and $5 million in debt in the round.
The funds will be used in expanding to other cities, hiring workforce for the technology verticals and taking the EV fleet to 200,000 units (from 10,000 units) by 2025.
“We want to replicate the entire EV ecosystem which we have built in cities like Delhi and Bangalore in about 30 cities by 2025,” Gupta told Business Today.
Currently, Zypp is available in six cities and plans to take this number to 15 by the end of this year. He also highlighted how he and his team are working towards building maintenance hubs in other cities to ensure the drivers are provided with real-time services.
Elaborating on how the funding will ramp up Zypp’s technology game, Gupta said, “To have an EV-led company which is working in the last-mile delivery space, a lot of things need to be working in your favour.” Some of the things he listed include maintenance of the fleet, batteries working properly, ease in financing and ensuring that rentals for EVs come on time.
“All of that is tech-enabled and we need data science tools to make the system more effective overall.” The ultimate aim of Zypp Electric, Gupta said, is to give the “best of service, support and platform” to its users and riders.
BT had reported in September last year that the company is planning to raise funding between $25- $30 million. “We want to capture the markets where ecommerce penetration is high,” Gupta told BT then.
Zypp Electric was started in 2017 by Gupta and his wife Rashi Agarwal as a last-mile delivery service platform that rents EVs to hyperlocal, ecommerce, and e-grocery businesses.
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