Zypp Electric Secures $14 Mn Investment from Japanese Giant ENEOS

Zypp Electric, a Delhi NCR-based electric vehicle (EV) fleet management startup, has successfully raised INR 115.7 Cr (approximately $14 Mn) in a fresh round of investment from Japanese energy conglomerate ENEOS. This marks ENEOS’ first investment in an Indian startup, underscoring the growing global interest in India’s burgeoning EV market. The development was first reported by Inc42.

According to regulatory filings, the investment is being made through ENEOS Oil & Energy Pte Ltd, a subsidiary of ENEOS. Zypp Electric is raising this capital by issuing 1,372 Series C compulsory convertible preference shares to ENEOS. This investment appears to be part of a larger Series C funding round that Zypp is currently raising.

Industry estimates from Inc42 suggest that Zypp Electric is securing this fresh funding at a valuation of around $280 Mn, a significant increase from its previous $175 Mn valuation. Despite reaching out, Zypp Electric has not yet provided an official comment on the investment.

Previously, it was reported by Economic Times that Zypp Electric is in the process of raising approximately $40 Mn in Series C funding, led by Silicon Valley-based Tribe Capital.

Founded in 2017 by Akash Gupta and Rashi Agarwal, Zypp Electric specializes in providing electric scooters for last-mile deliveries, servicing clients such as Swiggy, Zepto, Flipkart, Rapido, Blinkit, Zomato, Uber, and Amazon. The startup currently operates an electric fleet of over 20,000 scooters and has expanded its operations to Bengaluru, Hyderabad, and Mumbai.

In addition to two-wheelers, Zypp Electric ventured into the three-wheeler cargo business last year and now boasts a fleet of over 750 three-wheeler EVs. This strategic expansion is part of the startup’s effort to strengthen its market presence and diversify its service offerings.

The development was first reported by Inc42.

Financially, Zypp Electric reported a remarkable 5X increase in revenue from operations in FY23, reaching INR 109 Cr, up from INR 21.4 Cr in the previous fiscal year. However, the company’s net losses also doubled to INR 40.5 Cr in FY23, compared to INR 15.2 Cr the prior year. Despite this, the startup claims to have achieved a 3X revenue growth in the financial year ending March 31, 2024 (FY24), though audited financials for this period have not yet been disclosed.

To date, Zypp Electric has raised approximately $75 Mn through multiple funding rounds. The startup’s investors include Gogoro, Venture Catalysts, LetsVenture, IAN, Ivy Growth, and We Founder Circle, among others. In its last Series B funding round in February of the previous year, Zypp secured $25 Mn through a mix of debt and equity.

As Zypp Electric continues to expand, it faces competition from other players in the EV fleet management sector, including MoEving, Baaz Bikes, Yulu, Zen Mobility, and Euler Motors.

This latest investment from ENEOS is expected to further accelerate Zypp Electric’s growth trajectory and enhance its ability to provide sustainable and efficient last-mile delivery solutions across India.