Subscribe to our newsletter and stay informed

Check out our list of top companies

Check out our carefully compiled lists of the most relevant and impactful companies within their fields.

Check out our list of top unicorns

Read and learn about the biggest companies that various countries have produced, how they made it, and what the future looks like for them.

Zypp Electric Secures Funding for SE Asia Expansion

Indian startup Zypp Electric is set to expand its EV rental service into Southeast Asia next year, with $15M investment
May 27, 2024

Indian startup Zypp Electric is gearing up to expand its electric vehicle (EV) rental service into Southeast Asia, thanks to a fresh $15 million investment from Japanese oil and energy conglomerate ENEOS. This strategic move is part of Zypp Electric’s broader plan to enter 15 new markets over the next two years, with a pilot launch in at least one Southeast Asian country early next year.

Co-founder and CEO Akash Gupta revealed in an interview with TechCrunch that Indonesia, Thailand, and the Philippines are prime candidates for this expansion, with Indonesia expected to be the first market to kick off. These countries, known for their heavy reliance on two-wheelers and delivery services, present an ideal landscape for Zypp Electric's services.

Zypp Electric's Series C funding round, which is projected to total between $35 million to $40 million, is expected to close in six to eight weeks. This latest investment round will fuel the company's ambitious growth plans, including potential expansions into the Middle East.

Currently operating in major Indian cities such as Delhi, Bengaluru, Mumbai, and Hyderabad, Zypp Electric offers an EV-as-a-service platform tailored for e-commerce companies and gig workers. The platform features an app and software providing data and analytics for fleet and delivery management, alongside a fleet of electric two-wheelers. Gig workers can rent these e-bikes through flexible daily, weekly, or monthly subscriptions, contributing to 28% of Zypp’s revenue. The rest comes from courier, e-commerce, food and grocery delivery, and ride-sharing companies, including big names like Amazon, BigBasket, DHL, Uber, Swiggy, Zepto, and Zomato. Zypp’s platform facilitates over 5 million deliveries monthly.

Zypp Electric has set its sights on deepening its market penetration rather than simply expanding to new cities. The company plans to grow its fleet from 22,000 to 50,000 electric two-wheelers over the next year and aims for a fleet of 200,000 within two and a half years. In addition to two-wheelers, Zypp has introduced electric three-wheelers in Delhi and Bengaluru, with plans to expand to Mumbai soon. This three-wheeler fleet already accounts for 10% of the company's revenue.

The startup’s aggressive expansion is backed by a robust funding history, including a $25 million Series B round led by Taiwan’s battery-swapping company Gogoro, with additional support from Goodyear Ventures, Google for Startups, and Shell E4.

Operationally profitable and on track to achieve EBITA (earnings before interest, taxes, and amortization) positive status within six to eight months, Zypp Electric is poised for a promising future. With its eyes set on new markets and a rapidly growing fleet, the company is well-positioned to make a significant impact in the EV rental space globally.

Last related articles

chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram