In a strategic move underscoring the global momentum towards sustainable transportation solutions, Zypp Electric, a B2B delivery and shared mobility startup based in Gurugram, India, has secured a significant investment of $14 million (approximately Rs 116 crore) from Japan-based petroleum firm, ENEOS Oil & Energy Asia. This latest infusion of capital marks the onset of Zypp Electric’s Series C funding round for the year, propelling the company further along its trajectory of reshaping urban mobility.
The investment landscape for electric vehicle (EV) ventures is evolving rapidly, with Zypp Electric emerging as a frontrunner in the domain of EV-as-a-service platforms. Founded in 2017, the company has swiftly established itself as a pioneering force in the realm of sustainable transportation, offering electric vehicle rental and delivery services powered by its fleet of e-scooters traversing the length and breadth of India.
The Series C financing round, as reflected in regulatory filings, entails the issuance of 1,372 Series C Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs 8,43,750 each, facilitating the infusion of Rs 116 crore into Zypp Electric’s operations. Notably, this investment from ENEOS Oil & Energy Asia comes at a pivotal juncture for Zypp Electric, augmenting its financial arsenal as it gears up to scale its business endeavours and bolster its market presence.
While the current investment falls short of the previously speculated $40 million funding round led by Tribe Capital, it underscores a vote of confidence in Zypp Electric’s vision and potential for growth. The company’s valuation pegged at $350 million in the anticipated funding round, signals investor optimism regarding its trajectory and market positioning.
Beyond financial metrics, Zypp Electric’s impact on sustainability is noteworthy. With claims of powering 15 million deliveries on electric vehicles and contributing to a reduction of approximately 33 million kilograms of CO2 emissions, the company exemplifies the convergence of profitability and environmental stewardship.
Zypp Electric’s journey has been punctuated by significant milestones, including previous funding rounds such as the $25 million Series B investment led by Taiwan-based battery-swapping platform Gogoro. Moreover, initiatives like the Employee Stock Ownership Plan (ESOP) buyback underscore the company’s commitment to fostering a culture of ownership and rewarding its workforce for their contributions to its success.
Financial performance metrics indicate a trajectory of robust growth for Zypp Electric, with revenues from operations surging fivefold to Rs 112 crore in FY23. While the company recorded losses of Rs 40.5 crore during the same period, its operational prowess has been underscored by claims of operational profitability in the subsequent fiscal year, with revenues soaring to Rs 325 crore in FY24.
As Zypp Electric charts its course forward, buoyed by the infusion of capital from ENEOS Oil & Energy Asia, the company stands poised to accelerate its mission of revolutionizing urban mobility through sustainable, electric-powered solutions. With a commitment to innovation, environmental sustainability, and operational excellence, Zypp Electric embodies the spirit of progress driving the transition towards a cleaner, more sustainable future for urban transportation.
