Mumbai, Pune, and Hyderabad are among the cities where the company is planning to expand this year.
Start-up electric mobility services provider Zypp Electric is targeting 2 lakh vehicles in the next three years. In order to fund the expansion of the company, Akash Gupta, the company’s CEO, and co-founder, has estimated that it will need up to $300 million.
It is estimated that the company will generate Rs 500 crore this year, up from Rs 125 crore last year, as it plans to expand into cities such as Mumbai, Pune, and Hyderabad.
“Expansion means to us that today, we have 13,500 vehicles in our fleet. As a result, we have an expanded fleet. How fast we can get to 2,000 is what we need to achieve. We are doing our best to build those partnerships, we are building our technology, and we are building our R&D team to be able to do this in multiple markets,” said Gupta.
The gentleman claimed that the fleet size would reach 2 lakhs in three years when asked what the timeline would be for reaching this level.
With its current presence in Delhi-NCR and Bengaluru, Zypp offers delivery services to many e-commerce, food, and pharmacy players such as Swiggy, Zomato, Amazon, Myntra, Delhivery, and PharmEasy, among others.
“We are expanding into more markets. We are planning to travel in the coming months to Mumbai, Pune, Hyderabad, and many markets that have potential,” he added.
When asked about funding, Gupta responded that, at the moment, the company is not seeking to raise funds as it recently closed its series B funding.
As he explained, however, “This business is highly expandable, and it will need around USD 250 to 300 million in capital to be successful”.
In response to a question as to whether the company would consider another fundraising round in the future, he said, “I believe we will be back in the market at the right time. But, at present, we are focusing on utilizing the capital that has been raised, expanding and showcasing the value in new markets.”.
A series B funding round was announced by Gogoro, a Taiwanese company specializing in battery-swapping services, in February this year, which raised $25 million for the company.
According to Gupta, the company earned Rs 125 crore in FY23, while the goal for this year is to earn Rs 500 crore, which is an increase of Rs 25 crore from FY23.
“We’re open to all modes of transportation,” he said when asked if Zypp would look beyond its core electric two-wheelers as it expands its last-mile delivery fleet, of which about 250 are already operational. As demand grows, we can add form factors to our business, he added.
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