Gurugram-based Zypp Electric raises $15M from ENEOS

Gurugram-based Zypp Electric, a startup specializing in EV-as-a-service and shared mobility, has raised $15 million from ENEOS Oil & Energy Asia, a subsidiary of the Japanese energy conglomerate ENEOS.

The investment marks ENEOS' first foray into the Indian startup ecosystem.

What does Zypp Electric do?

Founded in 2017, Zypp Electric provides electric scooter rental services and last-mile delivery solutions across India.

Zypp's notable clientele includes e-commerce and local merchants like Swiggy, Flipkart, Zomato, Uber, and Amazon.

The startup claims to operate a fleet of over 20,000 electric scooters in major cities like Delhi NCR, Bengaluru, Hyderabad, and Mumbai, and have recently expanded into the three-wheeler cargo segment with over 750 three-wheeler EVs.

What is the purpose of fundraising?

This $14 million investment is part of a larger Series C funding round that Zypp Electric is currently raising. Earlier reports suggested that the company aims to raise around $40 million in this round, led by Silicon Valley-based Tribe Capital, which values Zypp Electric at approximately $280 million.

The valuation nearly doubles the company's previous valuation of $175 million from its last funding round. The funds will likely be used to expand their fleet, improve technology, and possibly enter new markets.

How well Zypp Electric is performing financially?

Zypp Electric has shown significant growth over the years. In the fiscal year 2022-23 (FY23), the company's revenue from operations surged fivefold to Rs 109 crore, up from Rs 21.4 crore the previous year. 

However, net losses also doubled to Rs 40.5 crore from Rs 15.2 crore in the same period. Despite the lack of disclosed audited financials for FY24, Zypp claims a three-fold increase in revenue, recording Rs 325 crore, and states that it was operationally profitable in FY24. 

To date, the company has raised approximately $80 million across multiple funding rounds.