Zypp Electric Fuels Growth with Fresh Series C Funding

Zypp Electric, a leading player in the B2B delivery and shared mobility space leveraging electric vehicles, has secured a significant investment of Rs 116 crore (approximately $14 million) in its Series C funding round. This marks the first funding milestone for the Gurugram-based company in 2024.

The investment comes from ENEOS Oil & Energy Asia, a prominent Japanese petroleum firm. To facilitate this capital infusion, Zypp Electric’s board approved a special resolution authorizing the issuance of 1,372 Series C compulsorily convertible preference shares (CCPS) at an issuance price of Rs 8,43,750 each. This information is according to regulatory filings accessed through the Registrar of Companies.

Potential for Continued Growth

Earlier reports from Inc42 suggested that Zypp Electric was in discussions to secure $40 million in its current funding round, with Tribe Capital leading the investment at a valuation of $350 million. This hints at the possibility of Zypp Electric attracting further investment in the near future.

Company Background and Impact

Established in 2017, Zypp Electric has carved a niche as a leading EV-as-a-service platform. The company offers electric vehicle rentals alongside last-mile delivery services facilitated by its network of e-scooters operating across India. Zypp Electric takes pride in powering a substantial 15 million deliveries on electric vehicles, contributing to a reduction of approximately 33 million kilograms of CO2 emissions, a testament to their commitment to environmental sustainability.

Financial Performance and Investment History

Zypp Electric’s funding history reflects a trajectory of consistent growth. With the addition of this Series C round, the company has garnered a total of approximately $80 million. A significant portion of this funding came from a $25 million Series B round led by Gogoro, a prominent Taiwanese battery-swapping platform, in February of last year. Zypp Electric has also received backing from notable investors such as IAN Fund, 9 Unicorns (now known as 100 Unicorns), Anthill Ventures, and Eiman Abdullah Mahfood Al Qatar.

Demonstrating a commitment to employee well-being, Zypp Electric implemented its first Employee Stock Ownership Plan (ESOP) buyback program just months after the Series B round, benefiting 15 employees.

Zypp Electric’s financial performance has shown positive signs. The company’s revenue from operations in FY23 witnessed a fivefold increase, reaching Rs 112 crore. However, the company also reported losses of Rs 40.5 crore during the same period. According to Zypp Electric, the company achieved operational profitability and recorded a revenue of Rs 325 crore in FY24. It is important to note that the company’s audited annual results for FY24 are yet to be filed.