Indian startup Zypp Electric is poised for significant expansion into Southeast Asia in early next year, leveraging a fresh investment from Japanese oil and energy conglomerate ENEOS. TechCrunch.com has exclusively learned that Zypp Electric plans to be operational in 15 markets over the next two years, with a pilot launch in at least one Southeast Asian market on the horizon. Co-founder and CEO Akash Gupta revealed in an interview that the latest funding round, totaling $15 million and led by ENEOS, forms part of Zypp Electric’s Series C round, projected to reach between $35 million to $40 million and expected to conclude within the next six to eight weeks.

The startup has identified Indonesia, Thailand, and the Philippines as potential markets due to their high reliance on two-wheelers for deliveries. Indonesia is slated to be the initial market for Zypp Electric's Southeast Asia expansion. Gupta emphasized ongoing discussions with key stakeholders about the Southeast Asia launch plan, with further details expected in the next two to three quarters. Additionally, Zypp Electric is exploring opportunities to enter the Middle Eastern market as part of its global expansion strategy, though specific details remain undisclosed at this time.

Headquartered in Gurugram, Zypp Electric currently operates in major Indian cities including Delhi, Bengaluru, Mumbai, and Hyderabad. The startup offers an EV-as-a-service platform tailored for e-commerce companies and gig workers. This platform includes an app and software for fleet and delivery management, alongside a fleet of electric two-wheelers. Gig economy workers constitute approximately 28% of Zypp’s revenue, while the remainder of its business serves courier, e-commerce, food and grocery delivery, and ride-sharing companies such as Amazon, BigBasket, DHL, Uber, Swiggy, Zepto, and Zomato. The startup facilitates 5 million deliveries each month through its platform.

Zypp Electric has been actively expanding its business both geographically and in terms of fleet size. Originally planning to scale its fleet to 200,000 electric two-wheelers and enter 30 Indian cities by the end of 2025, the startup has now opted to deepen its presence in existing markets rather than expand to new cities with minimal presence, as explained by Gupta to TechCrunch. The startup has also introduced electric three-wheelers in Delhi and Bengaluru, with plans to expand to Mumbai in the near future. The three-wheeler segment already contributes 10% to Zypp’s total revenue.

Currently, Zypp operates approximately 15,000 electric two-wheelers in Delhi, 5,000 in Bengaluru, 1,000 in Mumbai, and 500 in Hyderabad. Gupta outlined plans to deepen market penetration and introduce a new market every quarter. The company aims to grow its fleet from 22,000 electric two-wheelers to 50,000 over the next year, with ambitions to expand further to a fleet of 200,000 electric two-wheelers within the next two and a half years.

In February last year, Zypp Electric raised $25 million in a Series B round led by Taiwan’s battery-swapping company Gogoro, with additional support from Goodyear Ventures, Google for Startups, and Shell E4. Gupta highlighted that Zypp Electric is already operationally profitable and is on track to achieve EBITA positive status in six to eight months, followed by profitability after taxes within 12 to 14 months.


Source: TechCrunch.com