Electric Vehicles and logistics fleet-as-a-service startup, Zypp Electric, is planning to expand to 20 cities in the next 24 months, said co-founder, Akash Gupta.
The Gurugram-based startup is planning to penetrate cities like Hyderabad, Chennai, Mumbai, Jaipur, Ahmedabad, and more. It will primarily focus on food, pharma, e-grocery, and ecommerce deliveries.
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.
“We want to capture the markets where ecommerce penetration is high,” said Gupta. Its presence is currently limited to Delhi with over 6,000 vehicles. Last year, it also launched its services in Bangalore where it has a fleet of around 1,000 vehicles. The plan to go deeper into this market is also on the cards, according to him.
To fund its expansion plans, the B2B EV and logistics firm plans to raise funds in the coming times. “We are looking at raising $25 - $30 million," Gupta said.
“50 percent of this will go into building the team, 30 percent for growth purposes like setting up maintenance hubs, around 13-14 percent will be used for R&D and the remaining will go into marketing.”
Zypp Electric has raised $12.5 million since its inception. It raised $1 million in August this year through debt funding from Northern Arc Capital. It is also backed by investors such as 9Unicorns, Anthill Ventures, Riso Capital Fund, LetsVenture, Nanavati Family Office, We Founder Circle, Dholakia Ventures, Venture Catalysts, and IAN Fund.
Akash says that they are in the business of accelerating electric mobility and their long-term vision is to replace the petrol fleet with the electric vehicle one. “We want to reduce the per delivery cost for companies which is right now very high, and also increase what drivers earn, and ensure that there's pollution control too.”
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