The company recently completed 20.5 million deliveries for quick-commerce platforms such as Zepto, Blinkit, BigBasket Now, and aims to grow its fleet size from the current 20,000 EVs to 500,000 e-bikes by FY30.
03 Dec 2024 | 2728 Views | By Mayank Dhingra
New Delhi-based electric vehicle logistics service provider Zypp Electric achieved the milestone of completing over 20 million deliveries for partners such as Zepto, Blinkit, and Big Basket Now, among others, which are bringing a disruption with their quick-commerce services in India. The company says a predominant portion of these 20.5 ...
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New Delhi-based electric vehicle logistics service provider Zypp Electric achieved the milestone of completing over 20 million deliveries for partners such as Zepto, Blinkit, and Big Basket Now, among others, which are bringing a disruption with their quick-commerce services in India. The company says a predominant portion of these 20.5 million deliveries have taken place in the last 15-24 months, when the landscape started changing after the emergence of new-age startups such as Zepto.
In the process, Zypp Eectric claims it has enabled these quick-commerce platforms to save over 2.5 million kilograms of Co2 emissions by virtue of its all-electric fleet of two-wheelers, which comprises 60% fixed-battery scooters, and the remaining with a battery-swap option that enables its rider partners to go the extra mile. The company also claims to be the largest EV fleet provider for quick-commerce players in the country with a 15-20% market share of all quick-commerce deliveries in Delhi and the national capital region (NCR) alone.
Zypp Electric which presently offers its EV fleet services in three key markets - Delhi-NCR, Bengaluru, and Mumbai - now eyes the next set of expansion into more cities, including Pune, Hyderabad, and Chennai, along with certain Tier-2 markets such as Ahmedabad, Lucknow, and Jaipur.
According to Akash Gupta, Co-founder, and CEO, Zypp Electric, “These are the markets that are on the anvil for us over the next 12-18 months, and with this, we will grow our fleet from the existing 20,000 bikes to 100,000 e-bikes in this period. This is the demand that we can clearly fulfil.”
“All these companies need a quality supply of well-trained rider partners along with electric vehicles, and that is where Zypp comes in. Since each of these startups has a strong focus on ESG and sustainability, Zypp becomes the de-facto choice for these players with its largest EV fleet in this segment of last-mile logistics,” Gupta added.
The company says it is working with Indian-origin EV OEMs of the likes of Lectrix, and Odyssey for scaling its fleet. “We have placed a 40,000-unit e-bike order with Odyssey, and another 30,000 bikes with Lectrix. The idea is to go deep and build the right product which is fit for our use case. We have tied up with these OEMs for a made-in-India Zypp green bike wherein Zypp Electric controls the technology right from motor, battery, BMS, that goes into these two-wheelers,” Gupta explained.
As per Gupta, Zypp Electric is on its way to become EBITDA-level profitable in the next 4-5 months, once it hits a fleet size of 25,000 e-bikes. While it raised US$ 15 million (approximately Rs 125 crore) in funding earlier this year from Japanese investor ENEOS, Zypp Electric is in the discussion phase to raise more funds to fuel its future ambitions. The company is eyeing another round of US$ 30-35million (approximately Rs 250 crore to Rs 300 crore) investment in the quarter.
“We are already in conversation to raise the next round of US$ 30-35 million and we will unlock this round over the next quarter. This is going to be the pre-IPO round for us,” Gupta pointed out at the last round of funding before going for an IPO. In the longer run, the company targets scaling its fleet size to 500,000 e-bikes in the next five years on the back of significant expansion in multiple cities across the country.