We would like to achieve this by way of scaling manufacturing, diversifying our product lines and bolstering partnerships with e-commerce and logistics players, says Namit Jain.
07 Jan 2025 | 4186 Views | By Autocar Professional Bureau
Zen Mobility is betting big on the last mile mobility landscape, as he explains in this interview that this comprises 80% of its revenues. In an interview, the company's CEO and founder Namit Jain talks about his company's vision for the future and how their compact micropod and soon to ...
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Zen Mobility is betting big on the last mile mobility landscape, as he explains in this interview that this comprises 80% of its revenues. In an interview, the company's CEO and founder Namit Jain talks about his company's vision for the future and how their compact micropod and soon to be launched maxi-pod will ensure that it covers the entire spectrum of last mile delivery requirements. Excerpts:
What have the major demand drivers for low-speed electric three-wheelers been? Can you explain how Zen Mobility has contributed to last-mile mobility?
We are seeing a rapid increase in the growth of e-commerce and hyper-local delivery services, which has especially led to the proliferation of sustainable last mile logistics, given the rise in fuel costs. This is where we come in. The last mile forms the cornerstone of our business strategy, accounting for 80% of our revenues. Our flagship product, the Zen Micropod, is tailored to meet this demand, offering a robust, low-cost solution for fleet operators and SMEs.
What is your take on the evolution of the industry and how do you see it panning out a few years from now?
The Indian government offers several policies and subsidies to promote the adoption of electric three-wheelers. Take for instance, the PM E-Drive Scheme, which offers incentives for purchasing electric three-wheelers and supports the installation of charging infrastructure. As you might be aware, it comprises a subsidy of up to Rs 25,000 for small three-wheeler EVs, a subsidy of up to Rs 50,000 for large three-wheeler EVs. This combined with a renewed focus on the environment and the cost factor of electric vehicles, adds to the lucrativeness of the last mile mobility services as an alternative. Now you will also find an increasing number of players in the market, showing the shifting trends towards this collective mass mobility solution that combats costs, pollution and ease of delivery and service.
While there are challenges in terms of battery sourcing, the cost is expected to reduce significantly soon, on the back of lower lithium prices, continued investments and next generation technologies, making it an even more viable option. Besides this, there is also the high initial investment that manufacturers and fleet operators have to face, while transitioning to electric vehicles. Zen Mobility addresses these challenges through agile manufacturing, strong supplier partnerships, and an innovative leasing solution, Zenflo, which reduces upfront costs for operators.
Can you take us through your key customer segments and growth drivers?
Our key customer segments include e-commerce and quick commerce players for parcel and grocery deliveries. Aggregators and logistics providers for urban and hyperlocal deliveries, and SMEs involved in retail distribution. Moreover, we are seeing the fastest growth in the e-commerce and quick commerce sectors, on the back of increasing consumer demand for faster and more frequent deliveries, coupled with their shift towards greener operations.
Tell us more about your product Maxi Pod.
The Maxi Pod has been designed for larger cargo needs, with enhanced payload capacity and improved range. It will cater to businesses requiring higher delivery volumes while maintaining operational efficiency. We anticipate its commercial launch by Q2 of FY26, following rigorous testing and strategic market validation.
How are you preparing against established players and startups?
We are taking a three pronged approach, with a focus on customer centric innovation, which ensures vehicles tailored to specific operational needs, using leasing models such as our ZenFlo, ensuring affordability and accessibility, and our designs are also unique, focusing on lightweight structures and modularity. These will give us a cutting edge against others in the marketplace. Our compact Micropod and soon-to-belaunched Maxi Pod will ensure that we cover the spectrum of last-mile delivery requirements.
Can you take us through your future expansion plans?
Our current manufacturing facility in NCR has an annual capacity of 30,000 vehicles, with scalability options. Given the growing demand, we are evaluating further expansion, potentially exploring a greenfield facility in a strategic location to support long-term growth and reduce logistical costs.
What are your future growth aspirations?
We would like to establish Zen Mobility as a market leader in last mile electric vehicle solutions. We would like to achieve this by way of scaling manufacturing, diversifying our product lines and bolstering partnerships with e-commerce and logistics players. This is a game of all collaborators and together we can achieve last mile mobility sustainably.
2024 was a year of IPOs. We saw some very big names Hyundai Motor India, Swiggy, NTPC Green and Bajaj Housing Finance listing on bourses. Besides these known names, there is also a focus on SME IPOs, as smaller firms look to seek funding from investors. What is your take on SME IPOs are VC funding. Are you looking to go public anytime in the future?
An SME IPO is a potential avenue we are exploring for medium-term capital requirements, but VC funding remains a strong choice for its strategic value and growth-oriented nature. Our approach will depend on market conditions and alignment with our long-term vision.