India’s leading EV-as-a-service platform, Zypp Electric, raised USD 1 million (around INR 7.6 crore) in debt funding on April 25, 2022. Chennai, India-based Northern Arc provided the debt funding to Zypp Electric.
Purpose of Funding for Zypp Electric
Zypp Electric plans to expand its electric vehicle (EV) fleet services to use the latest capital. The EV logistics platform is looking to deploy 1.5 lakh e-scooters in the country over the next three years.
Meanwhile, the company is growing its user base on Zypp rentals at 300 per cent month-on-month. It also has plans for expansion and investment in more scooters under its fleet.
Zypp, through its continuous efforts to invest and strategize toward the mission of zero-emission, has become the first EV logistics player to turn EBITDA positive business. The startup operating in the last mile space also recorded a 5x revenue annually.
Earlier, Zypp Electric raised around USD 7 million in a Series A round, co-led by 9Unicorns and Anthill Venture. The round also witnessed participation from family offices and early-stage funds such as Nanavati Family Office, We Founder Circle, Silicon Valley-based Riso Capital Fund, and Dholakia Ventures. Meanwhile, existing investors, Venture Catalysts and IAN Fund, also invested in the round.
What the founder has to say
“Zypp turning profitable is proof that it is on the right path and utilizing its resources efficiently in the right direction. The best part is that we have achieved the EBITDA positive milestone and a 5x revenue growth in this FY compared to the last FY,” said Akash Gupta, Co-Founder and CEO of Zypp Electric.
In addition, he said, “We believe that as a growing startup, this is a clear sign of strong foundational values and the future potential of our business model. Further, Northern Arc is a highly respectable financial services platform and an NBFC; with USD 1 million debt raised from them, we’ve added another level of growth at much better IRRs as we accelerate closer to our vision of 100 per cent EVs in the last mile in the country.”
What the investor has to say
“We are delighted to partner with Zypp Electric in their mission to make last-mile logistics emission-free by using the ecosystem of EVs and EV-based technology. It aligns well with our focus on supporting businesses that accelerate the adoption of sustainable energy,” said Bama Balakrishnan, COO, Northern Arc Capital.
The company enjoys partnerships with e-commerce segment players such as Zomato, Swiggy, BigBasket, Amazon, Myntra, PharmEasy, Jiomart, Delhivery and Spencers.
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