Electric vehicle delivery app Zypp Electric on Wednsday said it has raised Series B funding of $25 million (around Rs 206 crore) led by Gogoro.
The round also saw participation from a clutch of new and existing investors including Goodyear Ventures, 9Unicorns, WFC, Venture Catalysts, LetsVenture, IAN, Ivygrowth, Grip with angel backers.
The latest fundraise valued the company at around Rs 1,300 crore, Zypp cofounder and chief executive officer Akash Gupta told VCCircle.
The company raised $20 million in equity and $5 million in debt in this round.
Founded by Gupta and Rashi Agarwal in 2017, the hyperlocal service provider offers last-mile deliveries on behalf of its slew of clients such as BigBasket, Zepto, Flipkart, Myntra, Zomato, Swiggy, Blinkit, Dunzo, Uber, Rapido, Jio Mart, PharmEasy, 1MG, Delhivery, and Bluedart, among others.
Zypp plans to use the fresh funds across its operations as it looks to expand its fleet from 10,000 to 2 lakh electric scooters and widen its footprint to 30 Indian cities by December 2025.
It claims to have already completed 15 million deliveries of electric vehicles for its large pool of top ecommerce partners.
“We have around 10,000 EVs in the six cities we operate in, including Delhi NCR and Bengaluru. We plan to end 2023 with 50,000 vehicles and 2024 with 1 lakh vehicles, as expand to about 15 cities in the next 12 months and 30 cities in the next 24 or 30 months,” said Gupta.
The company will also work on further improving its driver experience, expanding its EV hub infrastructure with Gogoro battery swapping, and building improved IoT and AI-enabled EV Fleet management technology. It will also ramp up its operations by hiring across technology and top-level positions.
With the fresh funding, Zypp has raised $37.5 million to date, including $30 million in equity and $7.5 million in debt. Prior to this, the company had raised around $7 million in its Series A round co-led by 9Unicorns and Anthill Ventures.
"Zypp Electric has taken a key leadership position in the sustainable transformation of India's fleet and last-mile delivery industry but the opportunity is immense and with this new funding it will be able to expand its capabilities and market impact. As a technology innovator and global leader in battery swapping, Gogoro is committed to advancing urban sustainable energy and transportation and supporting like-minded companies like Zypp Electric," said Horace Luke, founder and chief executive officer, Gogoro.
In November last year, Gogoro and Zypp had announced a strategic B2B partnership to accelerate the electric transformation of fleets and last-mile deliveries in India. Under the pilot project, Zypp and Gogoro are deploying 100 battery-swapping-enabled electric scooters in Delhi-NCR and six battery-swapping stations at Zypp hubs.
