Zypp Electric, one of India’s leading EV-as-a-service platforms, has announced that it has raised $1 mn in debt funding from Northern Arc to expand its EV fleet services. The company aims to use debt as a new expansion funnel along with the current leasing strategy. Zypp Electric is planning to deploy 1.5 lakh electric scooters in India by 2025.
According to Zypp Electric, through its continuous efforts to invest and strategize toward #MissionZeroEmission, it has become the first EV logistics player in India to turn EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) positive in business. The company has been able to do so within four years of starting its operations and it also recorded a 5X growth in revenue annually.
Akash Gupta, Co-Founder & CEO, Zypp Electric, said “Zypp turning profitable is proof that we are on the right path and utilising our resources efficiently in the right direction. Further, Northern Arc is a highly respectable financial services platform, and NBFC, with $1Mn debt raised from them, we’ve added another level of growth at much better IRRs as we accelerate closer to our vision of 100% EVs in the last mile in the country”.
Bama Balakrishnan, COO, Northern Arc Capital, said “We are delighted to partner with Zypp Electric in their mission to make last-mile logistics emission-free by using the ecosystem of Electric Vehicles and EV-based technology. It aligns well with our focus on supporting businesses that accelerate the adoption of sustainable energy”.
Zypp Electric claims that it is currently growing its user base on Zypp rentals at 300 per cent month on month with further plans of expansion. The company has more than 5,000 EVs in its fleet and it has already partnered with industry leaders in the e-commerce segment across logistics, grocery, food, and pharma sectors, including Zomato, Swiggy, BigBasket, Amazon, Myntra, PharmEasy, Jiomart, Delhivery and Spencers to ensure sustainable last-mile delivery for the country.