Indian startup Zypp Electric plans to expand its EV rental service to Southeast Asia with investment from ENEOS, a Japanese oil and energy conglomerate.
Zypp Electric plans to expand into 15 markets within the next two years. The company aims to launch its pilot in at least one Southeast Asian market early next year. The recent funding of $15 million, led by ENEOS, is part of Zypp Electric’s Series C round, which is projected to be between $35 million to $40 million and will be closed in six to eight weeks. Indonesia, Thailand, and the Philippines are potential markets for Zypp Electric, with Indonesia being the first market to begin operations. The company is currently discussing its Southeast Asia launch plan with various players and will provide more details in the next two to three quarters.
Zypp Electric is also exploring opportunities for expansion into the Middle East as part of its global growth strategy. However, specific details about the Middle Eastern launch were not disclosed.
Currently operating in major Indian cities like Delhi, Bengaluru, Mumbai, and Hyderabad, the Gurugram-based startup offers an EV-as-a-service platform tailored for e-commerce companies and gig workers. The platform includes an app and software that provide data and analytics for fleet and delivery management, along with a fleet of electric two-wheelers. Approximately 28% of Zypp’s revenue comes from gig economy workers who rent the ebikes through daily, weekly, or monthly subscriptions. The remaining portion of the business serves courier, e-commerce, food and grocery delivery, and ride-sharing companies such as Amazon, BigBasket, DHL, Uber, Swiggy, Zepto, and Zomato. The startup’s platform facilitates around 5 million deliveries per month.
Zypp Electric has been focused on expanding its business both geographically and in terms of volume. Initially, the company had plans to expand its fleet to 200,000 electric two-wheelers and enter 30 Indian cities by the end of 2025. However, according to Gupta, the startup has decided to prioritize a deeper presence in existing markets rather than launching in new cities with minimal presence.
Zypp Electric has expanded its services to include electric three-wheelers in Delhi and Bengaluru, with plans to expand to Mumbai soon. The three-wheeler fleet already contributes 10% to the startup’s total revenue. Currently, Zypp has approximately 15,000 electric two-wheelers in Delhi, 5,000 in Bengaluru, 1,000 in Mumbai, and 500 in Hyderabad.
The company’s strategy is to deepen its presence in existing markets while launching a new market every quarter. Zypp aims to increase its fleet from 22,000 electric two-wheelers to 50,000 within the next year, with a long-term goal of reaching 200,000 electric two-wheelers in the next two and a half years.
In February last year, Zypp Electric raised $25 million in a Series B round, with key backers including Gogoro, Goodyear Ventures, Google for Startups, and Shell E4.
According to Gupta, Zypp Electric is already operationally profitable and expects to achieve positive EBITA (earnings before interest, taxes, and amortization) in six to eight months, followed by profit after taxes in 12 to 14 months.