Indian electric vehicle startup Zypp Electric gets ENEOS backing to fund Southeast Asia expansion

Indian startup Zypp Electric plans to use new investments from Japanese oil and energy conglomerate ENEOS to bring its electric vehicle rental service to Southeast Asia early next year, TechCrunch has exclusively learned.

The company aims to be in 15 markets over the next two years. Of those 15 markets, Zypp Electric plans to launch its pilot in at least one Southeast Asian market early next year, co-founder and CEO Akash Gupta told TechCrunch in an exclusive interview. The latest funding, which totaled $15 million and is led by ENEOS, is part of Zypp Electric’s Series C round, which Gupta projects will be between $35 million and $40 million and will close in six to eight weeks.

Indonesia, Thailand and the Philippines are potential markets for Zypp Electric. All of these countries focus on two-wheelers and handle a lot of deliveries, the co-founder said, adding that Indonesia will be the first market to start.

“There are different ways we think about and discuss that. [Southeast Asia launch plan] with some players. We will bring it out in the next two-three quarters,” Gupta said.

He also mentioned that the startup is in initial talks to venture into the Middle East as part of its global expansion. However, the exact details of the Middle East launch were not revealed.

The Gurugram-based startup, which currently operates in major Indian cities of Delhi, Bengaluru, Mumbai and Hyderabad, offers an electric vehicle-as-a-service platform that caters to e-commerce companies and freelancers. The platform includes an app and complementary software that provides data and analytics for fleet and delivery management, as well as a fleet of electric two-wheelers. Gig economy workers, who can rent e-bikes on a daily, weekly or monthly subscription basis, account for about 28% of Zypp’s revenue. The rest 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’s platform is used to make 5 million deliveries every month.

Zypp Electric has been working to expand its business, geographically and by volume. Previously, the company planned to expand its fleet to 200,000 electric two-wheelers and enter 30 Indian cities by the end of 2025. However, Gupta told TechCrunch that the startup decided to delve deeper into the markets instead of launching in new cities with a minimal presence.

The startup has also started offering electric three-wheelers in Delhi and Bengaluru and plans to expand to Mumbai very soon. The fleet of three-wheelers already represents 10% of the startup’s total revenue, the co-founder said.

Today, Zypp has around 15,000 electric two-wheelers in Delhi, 5,000 in Bengaluru, 1,000 in Mumbai and 500 in Hyderabad.

“The idea is to delve deeper into these markets and, in parallel, launch a new market every quarter,” said Gupta. The company plans to increase its fleet from 22,000 electric two-wheelers to 50,000 over the next year. According to Gupta, the company wants to continue expanding its fleet to reach a fleet of 200,000 electric two-wheelers in the next two and a half years.

In February last year, Zypp Electric raised $25 million in a Series B round led by Taiwanese battery-swapping company Gogoro. It also counts Goodyear Ventures, Google for Startups and Shell E4 among its major backers.

Gupta said Zypp Electric is already operationally profitable and is on track to become EBITA (earnings before interest, tax and amortization) positive in six to eight months and achieve profit after tax in 12 to 14 months.

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