EV-as-a-service platform, Zypp Electric, has raised series B funding of $25 million led by Gogoro, a global technology player in battery swapping ecosystems that enable sustainable mobility solutions for cities. The funding round also witnessed participation from new and existing investors like Goodyear Ventures, 9Unicorns, WFC, Venture Catalysts, LetsVenture, IAN, Ivygrowth, Grip & other angels.
The round is a mix of equity and debt funding, with the $20Mn equity round and $5Mn debt for fleet expansion from global impact fund IIX along with a large national bank participating the same. This is also the first time global impact funds and Indian banks are participating in EV Debt for any fleet operator or startup in the country.
With the fresh funding, Zypp has now raised $37.5Mn ($30Mn in equity and $7.5Mn in debt or asset leasing) in total. The company will utilise the funds across its operations as it looks to expand its fleet from 10,000 to 200,000 (2 Lakhs) electric scooters and widen its footprint to 30 Indian cities by December 2025. With the funding, Zypp will work on further improving its driver experience, expanding its EV hub infrastructure with Gogoro battery swapping, building sharp IOT & AI enabled EV Fleet management technology, and growing its operations team by hiring across technology and top-level positions. Overall funding will be spent mainly in team & technology and rest in growth & expansion across multiple markets & use cases.
Speaking about the fundraise, Akash Gupta, Co-founder & CEO of Zypp Electric said, “This funding round bolsters our confidence, team & technology efforts to expand at scale across many cities of India and then the world. We at Zypp look to deploy 200,000 vehicles with plans afoot to be the largest EV services company in the world to reach our Mission Zero Emission.”
Zypp Electric is on its Mission Zero Emission in the last-mile delivery area by enabling major e-commerce, food, grocery delivery, and ride-sharing giants to go electric in 5 years of its inception.
Commenting on the investment, Horace Luke, Founder & CEO, Gogoro said, "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."
In November 2022, Gogoro and Zypp 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 6 battery-swapping stations at Zypp hubs.