EV startup Zypp Electric has raised $15 million in its Series C funding round led by Japanese major ENEOS, part of its ongoing $50 million round which is split into $40 million equity and $10 million debt. Announcing the fundraising in a statement on Monday, the company said existing investors 9unicorns, IAN fund, venture catalysts, WFC and others also participated in the round.

The capital raised will be deployed to expand Zypp’s fleet from 21,000 to 2 lakh electric scooters and extend its services to 15 cities across India by 2026.

Founded in 2017, the company focuses on making last-mile logistics sustainable and emission-free. The business model is to make carbon-free last-mile delivery for local merchants from e-commerce companies to delivery executives in order to delivery cost and pollution on an asset-light model.

Zypp Electric said it currently delivers groceries, medicines, food, and e-commerce packages through fully automated IoT and AI-enabled scooters.

“The technology tracks batteries that can be replaced at Zypp swapping stations which are installed at key touchpoints. Eco-friendly EV services also reduce the cost per delivery and help to make the city pollution-free,” the company said.

Speaking on the fundraising, Akash Gupta, Co-founder & CEO, Zypp Electric, said the new round will be used to drive the company towards EBITDA profitability.

“This investment propels our mission to revolutionize last mile delivery with sustainable EV solutions. We are eager to expand our fleet and enhance our tech platform, driving significant growth across India,” said Gupta.

Zypp Electric reported Rs 325 crore revenue in FY23-24 and had forayed into Mumbai and Hyderabad recently. The company said it has made over 50 million shipment deliveries via electric vehicles from January 2023 to March 2024.

“In India, last-mile delivery market is skyrocketing especially within urban areas. Zypp is operating its business as a pioneer in the EV motorcycle delivery market with competitiveness and this is the reason why we made the decision to invest,” said ENEOS.