Zypp Electric aims to capture 25% of EV fleet market in next five years

Last mile delivery provider Zypp Electric plans to capture at least 20-25% of the overall electric two-wheeler fleet market over the next three to five years by deploying 500,000 electric vehicles (EVs), Co-founder & CEO Akash Gupta told Business Today in an interaction. 
 
“Zypp Electric has developed a business model focussed on addressing key challenges by providing the right vehicles, establishing appropriate charging infrastructure, hiring and training skilled drivers, and ensuring proper vehicle maintenance. This approach not only helps customers transition to EVs but also tackles the supply challenges associated with it,” said Gupta.

According to Gupta, the company plans to deploy about 5 lakh electric vehicles in the next five years. The company has currently deployed 22,000 electric two-wheeler fleet, and it plans to scale up to 50,000 electric two-wheelers by the end of FY25, and 1.25 lakh electric two-wheelers by the end of FY26.

Gupta observes that approximately 1.5 to 2 million last mile delivery executives are currently opting for petrol two-wheelers. According to Gupta, the business model of Zypp Electric has made it very advantageous for delivery executives by shifting to a rental-based system, eliminating the need to purchase vehicles outright. This model addresses the financial challenges faced by delivery executives who often lack the funds for a down payment or to secure a loan for purchasing a bike.

As part of its expansion plans, Zypp Electric also aims to enter Tier II cities in the country. It is currently present in Delhi, Bengaluru, and Mumbai. “When we look at India versus global, the tide is going towards India (in terms of EV demand). When India aspires to go net zero, and there’s so much demand that we have, we would first expand at least in five more markets which we plan to do over the next 12 months,” said Gupta.
 
“We are exploring various ways of expansion. Our focus was to go deeper into the current markets, but now we are in the process of creating a strategy on entering newer markets. And that is when we will you will see Zypp expanding into a lot more smaller markets. But  I think we will take at least three to four months of our strategic roadmap to devise the Tier-II strategy, but soon you will see zip expanding into a lot more smaller markets also,” added Gupta.

Meanwhile, the company, which caters to quick commerce startups such as Blinkit, Zepto etc, also aims to eventually enter markets in South-east Asia, Africa, EMEA and Middle East. Just like its peers, Zypp Electric is also eyeing for an IPO (initial public offering) two years down the line, according to Gupta.

“We definitely plan to do IPO as we scale the business towards 200,000 electrified vehicles on road, which is after we expand into top eight to 10 cities in the country, which is going to happen over the next two, two and a half years, that is the right time for us to think about the IPO,” said Gupta.