EV startup Zypp Electric nabs $25M to hit 30 Indian cities by 2025

EV-as-a-service platform Zypp Electric on Wednesday announced raising funds of USD 25-million under series B funding from a clutch of investors, led by Gogoro.

The round is a mix of equity and debt funding, with the USD 20-million equity round and USD 5-million debt for fleet expansion from global impact fund IIX along with a large national bank participating the same, the company said.

This is also the first time global impact funds and Indian banks are participating in EV debt for any fleet operator or startup in the country, it added.

Besides Gogoro, the latest funding round also witnessed participation from new and existing investors like Goodyear Ventures, 9Unicorns, WFC, Venture Catalysts, LetsVenture, IAN, Ivygrowth, Grip & other angels.

In November last year, Gogoro and Zypp formed a strategic B2B partnership to accelerate the electric transformation of fleets and last mile deliveries in India.

Under the pilot project, Zypp and Gogoro are deploying 100 battery-swapping-enabled electric scooters in Delhi-NCR and six battery-swapping stations at Zypp hubs.

The funds will be utilized across the company's operations as it looks to expand its fleet from 10,000 to 2-lakh electric scooters and widen its footprint to 30 Indian cities by December 2025, Zypp Electric said.

With the fresh round of funding, Zypp has now raised a total of USD 37.5-million comprising USD 30-million in equity and USD 7.5 million in debt or asset leasing, it stated.

Zypp looks to deploy 200,000 vehicles with plans afoot to be the largest EV services company in the world to reach our Mission Zero Emission, Akash Gupta, Co-founder and CEO at Zypp Electric said.