In a significant development for India’s electric mobility sector, Zypp Electric, a leading EV-based last-mile delivery startup, is in advanced talks to raise $35 million (approximately ₹300.67 crore) in a fresh funding round. The development comes as the company continues to strengthen its position in the rapidly evolving quick commerce and last-mile delivery space.
Sources close to the matter reveal that the company has already secured $20 million of the targeted amount, with $10 million coming from Nuwama Private Wealth and another $10 million from a US-based venture capital firm. The remaining $15 million is expected to be raised from a Southeast Asia-based fund and investors from the BSE and NSE stock exchanges.
This funding round follows the company’s successful raise of ₹115.7 crore ($15 million) from Japanese energy giant ENEOS in May 2023, demonstrating continued investor confidence in Zypp’s business model and growth trajectory.
Founded in 2017 by Akash Gupta and Rashi Agarwal, Zypp Electric has established itself as a key player in the electric mobility space, providing electric scooters for last-mile deliveries to major e-commerce and quick commerce players. The company’s impressive client roster includes industry giants such as Swiggy, Zepto, Flipkart, Rapido, Blinkit, Zomato, Uber, and Amazon.
“The fresh capital will help us accelerate our mission of making last-mile logistics more sustainable and efficient,” said Akash Gupta, Co-founder and CEO of Zypp Electric. “We’re seeing tremendous demand from our partners, and this funding will enable us to expand our fleet and geographical presence significantly.”
The startup has shown remarkable growth, with its operating revenue surging 2.7 times to ₹292.7 crore in FY24, up from ₹109.1 crore in the previous fiscal year. However, the company’s net loss also increased to ₹91.1 crore in FY24, reflecting its aggressive expansion strategy and investments in growth.
In a strategic move towards strengthening its leadership team and preparing for an initial public offering (IPO), Zypp Electric recently appointed former SoftBank India head and Bharti Airtel veteran Manoj Kohli as its senior advisor. “Zypp’s technology-first approach and focus on sustainable mobility solutions position it perfectly to capture the growing demand for electric logistics solutions,” Kohli noted.
The company currently operates a fleet of over 20,000 electric scooters across Delhi NCR, Bengaluru, Hyderabad, and Mumbai. Over one-third of its fleet serves food-delivery platforms Zomato and Swiggy, with the remainder deployed across quick commerce, bike taxi, e-commerce, and hyperlocal delivery segments.
This funding round signifies growing investor confidence in India’s EV ecosystem and could potentially catalyze similar investments in Tamil Nadu’s mobility startups. As Chennai emerges as a hub for electric vehicle manufacturing and innovation, Zypp’s success could pave the way for more Tamil Nadu-based startups in the EV logistics space.
The development also aligns with India’s push towards electric mobility and sustainable last-mile delivery solutions, with the potential to create new opportunities for collaboration between startups and established automotive players in Tamil Nadu’s industrial corridor.
