Zypp Electric is planning to deploy around 2 lakh vehicles in its vehicle fleet in the coming 3 years and the company will require $300 million for its expansion plans, as per Akash Gupta, the CEO and co-founder.
The company is also planning to enter cities like Pune, Hyderabad, and Mumbai and is targeting a revenue of Rs 500 crore by the year-end which will be up from Rs 125 crore in 2022.
Akash Gupta said, “For us, the expansion is that today, we have 13,500 vehicles in the fleet. How fast we can get to 2 lakh 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.”
Zypp Electric serves food and grocery delivery players as well as e-commerce companies such as Amazon, Myntra, Swiggy, Zomato, PharmEasy, and others and is present in Bengaluru and Delhi-NCR.
He added, “We are expanding into more markets. We are planning to go into Mumbai, then Pune, Hyderabad and a lot of markets that have potential. This business is highly expandable and it would need over the next three to four years, around $250-300 million of capital.”
When asked about the possibility of another round of fundraising, he responded by stating that the company would consider entering the market again at the appropriate time. However, the current focus is on utilizing the capital raised effectively to expand the business and demonstrate its value in additional markets.
Regarding revenue, Gupta mentioned that in the previous fiscal year (FY23), the company achieved Rs 125 crore. He further stated that this year, the target is to reach approximately Rs 500 crore.
When questioned about the expansion of Zypp’s last-mile delivery fleet beyond electric two-wheelers, he expressed openness to exploring various form factors. The company already operates around 250 electric three-wheelers and is prepared to incorporate additional form factors based on demand in their business.