**Indian EV Startup Zypp Electric Secures $15M from ENEOS for Southeast Asia Expansion**
Indian startup Zypp Electric is set to expand its electric vehicle (EV) rental services into Southeast Asia, backed by fresh investment from Japanese oil and energy conglomerate ENEOS. The company plans to use this funding to enter its first Southeast Asian market early next year, aiming to be operational in 15 markets over the next two years. This initiative marks a significant milestone for the Gurugram-based startup, which has already established a strong presence in major Indian cities.
**Expansion Plans and Funding**
Zypp Electric’s co-founder and CEO, Akash Gupta, shared in an exclusive interview with TechCrunch that the latest $15 million funding from ENEOS is part of the company’s Series C round, which is expected to close with a total of $35 million to $40 million in the next six to eight weeks. Gupta highlighted Indonesia, Thailand, and the Philippines as potential initial markets for their Southeast Asia expansion, with Indonesia being the first country to launch.
The company is also considering expanding into the Middle East, although specific plans and details are still under discussion. Gupta mentioned that they are exploring various strategies and partnerships to facilitate this expansion, with more concrete plans to be revealed in the next two to three quarters.
**Current Operations and Business Model**
Zypp Electric currently operates in Delhi, Bengaluru, Mumbai, and Hyderabad, offering an EV-as-a-service platform primarily catering to e-commerce companies and gig workers. The platform includes an app and software for fleet and delivery management, as well as a fleet of electric two-wheelers. Gig economy workers, who can rent the e-bikes on a daily, weekly, or monthly basis, contribute about 28% of Zypp’s revenue. The remaining revenue comes from partnerships with courier, e-commerce, food and grocery delivery, and ride-sharing companies such as Amazon, BigBasket, DHL, Uber, Swiggy, Zepto, and Zomato. Zypp Electric’s platform supports around 5 million deliveries every month.
**Strategic Focus and Fleet Expansion**
Initially, Zypp Electric planned to expand its fleet to 200,000 electric two-wheelers and enter 30 Indian cities by the end of 2025. However, Gupta noted a strategic shift towards deepening their presence in existing markets rather than spreading thin across new cities. The company currently has approximately 15,000 electric two-wheelers in Delhi, 5,000 in Bengaluru, 1,000 in Mumbai, and 500 in Hyderabad. Gupta stated that the focus will be on intensifying operations in these cities while simultaneously launching in a new market every quarter.
Zypp Electric has also introduced electric three-wheelers in Delhi and Bengaluru, with plans to expand this offering to Mumbai soon. These three-wheelers already account for 10% of the company’s total revenue. Over the next year, Zypp aims to grow its fleet from 22,000 to 50,000 electric two-wheelers, with a long-term goal of reaching 200,000 vehicles within the next two and a half years.
**Financial Health and Future Goals**
In February of the previous year, Zypp Electric raised $25 million in a Series B round led by Taiwan’s battery-swapping company Gogoro. Other notable backers include Goodyear Ventures, Google for Startups, and Shell E4. Gupta emphasized that Zypp Electric is already operationally profitable and is on track to become EBITA (earnings before interest, taxes, and amortization) positive within the next six to eight months, with full profitability expected in 12 to 14 months.
**Conclusion**
Zypp Electric’s strategic funding and expansion plans underscore its commitment to scaling its operations and enhancing its market presence. With substantial backing from prominent investors and a clear focus on deepening its footprint in existing markets while exploring new regions, Zypp Electric is poised to make significant strides in the EV rental industry. The company’s efforts to provide high-quality, reliable electric vehicles and robust customer support highlight its dedication to revolutionizing the EV landscape in India and beyond.
