Zypp Electric, the EV-as-a-service platform said it has raised $25 million in a Series B funding round led by Gogoro, a global technology leader in battery-swapping ecosystems.
Taiwan-based Gogoro enables 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 and Grip.
With the funding, Zypp will work on further improving its driver experience, expanding its EV hub infrastructure with Gogoro battery swapping. Overall funding will be spent mainly on team and technology and the rest on growth and expansion across multiple markets and use cases.
The company will utilize the funds across its operations as it looks to expand its fleet from 10,000 to 200,000 electric scooters and widen its footprint to 30 Indian cities by December 2025.
“Zypp closing Series B in the current funding environment marks a validation of our team’s hard work,” said Akash Gupta, co-founder and CEO, Zypp Electric. “This funding round bolsters our confidence, team and 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’.”
The round is a mix of equity and debt funding, with the $20 million equity round and $5 million 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 $37.5 million ($30 million in equity and $7.5 million in debt or asset leasing) in total.
Zypp Electric works in the area of last-mile delivery. It enables major e-commerce, food, grocery delivery, and ride-sharing giants to go electric. In the 5 years of its inception, the firm is now enabling 10,000 Zypp-affiliated gig workers to earn a livelihood. It has already completed 15 million deliveries using electric vehicles for top e-commerce partners. Some of them include BigBasket, Zepto, Flipkart, Myntra, Zomato, Swiggy, Blinkit, Dunzo, Uber, and Rapido
Horace Luke, founder and 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,” said Luke.
Sandeep Mahajan, Managing Director, Goodyear India said his team is focused on investing in companies with a passion to advance mobility in a sustainable way and was impressed by the commitment of the Zypp team towards making this happen in India.
Goodyear Ventures is a business unit within Goodyear Tire & Rubber Company. It is focused on supporting and investing in seed-to-growth-stage startups in emerging mobility technology.
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.