Zypp Electric is a company that operates in the last mile space. It announced Monday that it had raised USD 1,000,000 (about Rs 7.6 Crore) in debt financing from Northern Arc. This will allow it to expand its electric vehicle (EV), fleet services and it plans to deploy 1.5 million e-scooters across the country in the next three-years.
Zypp has reported that Zypp is increasing its user base by 300 percent month-on-month on Zypp rentals with plans for expansion and investment in more scooters under its fleet.
It stated that the company plans to use its existing leasing strategy and debt to expand. The company intends to deploy 1.5 million e-scooters across India by 2025.
“Zypp becoming profitable is proof that the company is on the right track and is using its resources effectively in the right direction,” Akash Gupta, Co-Founder and CEO of Zypp Electric said. “The best part about Zypp Electric is that we have reached the EBITDA positive milestone and experienced a 5x increase in revenue this FY,” Akash Gopta, co-founder and CEO said.
“We believe this as a growing startup is a clear indicator of strong foundational values, and the future potential for our business model.
He said that Northern Arc, a highly respected financial platform and NBFC, has raised USD 1 million from them. This has enabled us to add another level of growth, at much higher IRRs, as we move closer towards our vision of 100 percent EVs in this country’s last mile.
Zypp has been the first EV logistics company to achieve EBITDA positivity through its ongoing efforts to invest in and strategize towards mission Zero Emission, according to the statement.
We are thrilled to partner with Zypp Electric to help them achieve their goal of making last-mile logistics emissions-free through the use of EVs, EV-based technology and the ecosystem. This aligns with our focus to support businesses that accelerate sustainable energy adoption,” Bama Balakrishnan (COO Northern Arc Capital) said.
Northern Arc Capital Limited is backed by prominent private equity players such as LeapFrog and IIFL, Accion, Accion, Augusta Investments (known under Affirma Capital), Sumitomo Mitsui Banking Corporation and Augusta Investments, among others.
Since its inception, it has raised more than Rs 1 lakh crore for its clients.
