Zypp Electric has successfully secured $14 million in fresh capital from Japanese energy giant ENEOS, as part of its Series C funding round. The startup is raising this capital by allotting 1,372 Series C compulsory convertible preference shares to ENEOS.
This infusion is reportedly part of a larger Series C round that Zypp is currently raising, with sources indicating the round’s total could reach approximately $40 million, led by Silicon Valley-based Tribe Capital.
According to Inc42‘s, this latest funding round values Zypp Electric at around $280 million, a significant increase from its previous valuation of $175 million. Despite inquiries, Zypp Electric did not respond to requests for comments at the time of publishing.
Founded in 2017 by Akash Gupta and Rashi Agarwal, Zypp Electric specializes in providing electric scooters for last-mile deliveries to local merchants and ecommerce companies. The startup’s client roster includes industry giants such as Swiggy, Zepto, Flipkart, Rapido, Blinkit, Zomato, Uber, and Amazon.
Zypp Electric boasts an electric fleet exceeding 20,000 EV scooters and operates in Delhi NCR, Bengaluru, Hyderabad, and Mumbai. Last year, the company expanded into the three-wheeler cargo business, now claiming over 750 three-wheeler EVs in its fleet.
In FY23, Zypp Electric’s revenue from operations surged by 5X to INR 109 crore, up from INR 21.4 crore the previous year. However, the net loss also increased, doubling to INR 40.5 crore from INR 15.2 crore in the same period. The company claims a 3X revenue increase for FY24, though audited financials have yet to be disclosed.
To date, Zypp Electric has raised approximately $75 million across multiple funding rounds, with backing from investors including Gogoro, Venture Catalysts, LetsVenture, IAN, Ivy Growth, and We Founder Circle. In February of last year, the startup raised $25 million in a mix of debt and equity during its Series B funding round.
Zypp Electric faces competition from other electric vehicle companies such as MoEving, Baaz Bikes, Yulu, Zen Mobility, and Euler Motors, among others.
Source: INC42
