Indian start-up Zypp Electric secures funding for Southeast Asia expansion
What's the story
Indian electric vehicle (EV) start-up, Zypp Electric, has successfully secured a fresh investment of $15 million from Japanese energy and oil conglomerate ENEOS.
This funding is part of Zypp's Series C round, which is projected to close between $35-40 million in the next six to eight weeks.
The funds will be used for the firm's planned expansion into Southeast Asia early next year, according to co-founder and CEO Akash Gupta.
Expansion plan
Zypp Electric targets two-wheeler-centric markets in Southeast Asia
Zypp Electric aims to establish its presence in 15 countries over the next two years.
The company plans a pilot launch in a minimum of one Southeast Asian market, with potential locations including Indonesia, Thailand, and the Philippines.
These countries are two-wheeler-centric and handle a significant volume of deliveries.
Gupta disclosed that "Indonesia will be the first market to begin in."
Business model
Current operations and future plans
Zypp Electric currently operates in top Indian cities including Delhi, Bengaluru, Mumbai, and Hyderabad.
The start-up offers an EV-as-a-service platform that caters to e-commerce companies and gig workers.
This platform includes an app and software that offers data analytics for fleet and delivery management, along with a fleet of electric two-wheelers.
Gig economy workers can rent such e-bikes via a daily, weekly, or monthly subscription, contributing to about 28% of Zypp's revenue.
Growth plan
Zypp Electric's fleet expansion and market strategy
Zypp Electric has plans to grow its current 22,000 electric two-wheeler fleet to 50,000 over the next year.
The long-term goal is to expand it further to a fleet of two lakh two-wheelers over the next two-and-a-half years.
Instead of debuting in new cities with minimal presence, Gupta stated that the start-up has decided to deepen its presence in existing markets.
The company has also started offering electric three-wheelers in Delhi and Bengaluru, and plans to expand this service soon.