Startup electric mobility services provider Zypp Electric is targetting to deploy 2 lakh vehicles in its fleet in the next three years and will need up to USD 300 million to fund its expansion, according to company CEO and co-founder Akash Gupta.
The company, which is planning to enter new cities like Mumbai, Pune and Hyderabad is targeting a revenue of Rs 500 crore this year, up from Rs 125 crore last year.
”For us, the expansion is that today, we have 13,500 (vehicles in the fleet). How fast we can get to 2,00,000 is what we have to go for. We are doing those partnerships, we are building that tech, we are building that team of R&D and to do this in multiple markets,” Gupta told PTI.
When asked for the timeline for reaching a fleet size of 2 lakh, he said it would be in three years.
Zypp, which serves e-commerce and food/grocery delivery players like Swiggy, Zomato, Amazon, Myntra, Delhivery and PharmEasy, among others, is currently present in Delhi-NCR and Bengaluru.
”We are expanding into more markets. We are planning to go into Mumbai, then Pune, Hyderabad and a lot of markets that have potential,” he added.
When asked about funding, Gupta said at the moment, the company is not out to raise funds as it had recently closed its series B funding.
However, he said, ”This business is highly expandable and it would need over the next three to four years, around USD 250-300 million of capital”.
Asked if the company would go for another fundraising, he said, ”…We would be again in the market when the right time comes in, but right now, the focus is to use the capital that we raised to put it to right use and expand and showcase the value in more markets”.
In February this year, the company announced the raising of USD 25 million in a series B funding round led by Taiwanese battery-swapping service provider Gogoro.
On the revenue front, Gupta said in FY23, the company had clocked Rs 125 crore and ”this year, we are targeting about Rs 500 crore”.
On whether Zypp would look beyond the core electric two-wheelers to expand its last-mile delivery fleet, he said, ”We are open to all kinds of form factors. We already have a few (electric) three-wheelers, about 250 that we are operating. Whenever there’s more demand we can add more form factors in our business”.
