Zapp Electric Vehicles Group Limited (NASDAQ:ZAPP), a British electric vehicle brand, has announced plans to enter the Indian market through a partnership with Bounce Electric 1 Private Limited. The memorandum of understanding signed between the two firms outlines Bounce’s role as Zapp’s contract manufacturing partner for the i300, an urban electric two-wheeler.
Bounce, which is backed by investment firm Accel, will provide assembly and potentially distribution services for the i300 in India. Additionally, the company will support the necessary homologation process for the vehicle in the country. Zapp EV’s CEO, Swin Chatsuwan, highlighted India’s significant market potential for premium two-wheelers, citing the country’s growing purchasing power and urban density as key factors.
The partnership is expected to facilitate a quicker commercial rollout of the i300 in India, with Zapp aiming to scale its business starting with a minimum capacity of 5,000 units per year. Notably, the i300’s design includes removable and portable battery packs that can be charged from standard wall sockets, eliminating the need for dedicated charging infrastructure.
Zapp EV utilizes a capital-efficient business model, relying on contract manufacturing partnerships to scale production without significant capital expenditures. This approach positions the company to potentially achieve positive free cash flow more rapidly compared to its peers in the electric vehicle industry.
The i300 is Zapp’s flagship product, designed to offer high-performance in an easy-to-use, step-through format. Zapp plans to provide customers with a direct-to-customer experience, delivering the i300 directly to buyers’ homes and offering ongoing support through authorized service providers.
This strategic move into India aligns with Zapp’s broader mission to redefine the electric two-wheeler segment and expand its global footprint. The information in this article is based on a press release statement from Zapp Electric Vehicles Group Limited.
In other recent news, Zapp Electric Vehicles Group Limited made significant announcements. The company’s shareholders have approved a reverse stock split, which will be implemented after market close on a forthcoming date. The split, at a ratio of 1-for-20, will reduce the number of ordinary shares from 500 million to 25 million, maintaining the company’s authorized share capital at $50,000. This move will increase the nominal value of shares from $0.0001 to $0.002, while the company’s ticker symbol, ZAPP, will remain unchanged.
Furthermore, the terms of outstanding warrants and equity-based awards will be adjusted. Specifically, the public warrants issued during the business combination with CIIG Capital Partners II, Inc. will now entitle holders to purchase one new ordinary share for every twenty warrants at an increased exercise price of $230.00 per new ordinary share.
