India, April 25, 2022: Zypp Electric, India’s leading EV-as-a-service platform, raised $1Mn 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 as they plan to deploy 1.5 Lakhs e-scooters in India by 2025. Zypp, through its continuous efforts to invest and strategize towards #MissionZeroEmission, has become the first EV logistics player to turn EBITDA positive business while also recording a 5x revenue annually.
Akash Gupta, Co-Founder & CEO, of Zypp Electric, said “Zypp turning profitable is proof that we are on the right path and utilizing our resources efficiently in the right direction. The best part is that we have achieved the EBITDA positive milestone along with a 5x revenue growth in this FY vs. last FY, also the achievement has come in when we’ve raised a fraction of capital vs. the other players in the mobility industry. We believe that as a growing start-up, this is a clear sign of strong foundational values and the future potential of our business model. 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”.
Being EBITDA positive is also a crucial parameter to foresee Zypp’s growth. As a growing start-up, the company has planned its cash flow very tightly to meet the investor’s expectations and gain users’ trust.
Zypp is growing its user base on Zypp rentals at 300% month on month with the plans of expansion and investment in more scooters under its fleet. The company is not just the leader in the last mile delivery EV model but with 5000+ active EVs, it has provided a sustainable solution to the gig workers in the country. Zypp has already partnered with all industry leaders in the e-commerce segment across logistics, grocery, food, and pharma sectors – like Zomato, Swiggy, BigBasket, Amazon, Myntra, PharmEasy, Jiomart, Delhivery, and Spencers to ensure sustainable last-mile delivery for the country.