The company aims to use debt as a new expansion funnel along with the current leasing strategy, as it plans to deploy 1.5 lakh electric scooters in India by 2025.
Zypp Electric, which offers EV-as-a-service and operates in the last-mile segment, has announced that the company has raised $ 1 million in debt funding from Northern Arc to expand its EV fleet services. The company aims to use debt as a new expansion funnel along with the current leasing strategy, as it plans to deploy 1.5 lakh electric scooters in India by 2025. According to Zypp Electric, through its continuous efforts to invest and strategise, the company has become EBITDA (Earnings Before Interest, Taxes, Deprecitation and Amortisation) positive within four years of operations.
Akash Gupta, Co-Founder & CEO, Zypp Electric, said, “Zypp turning profitable is proof that we are on the right path and utilising our resources efficiently in the right direction. The best part is that we have achieved the EBITDA positive milestone along with a 5x revenue growth in this FY vs. last FY. Also, the achievement has come in when we’ve raised a fraction of capital vs. the other players in the mobility industry. We believe that as a growing start-up, this is a clear sign of strong foundational values and the future potential of our business model. Further, Northern Arc is a highly respectable financial services platform, and NBFC, with $1 million debt raised from them, we’ve added another level of growth at much better IRRs as we accelerate closer to our vision of 100 % EVs in the last mile in the country.”
Bama Balakrishnan, COO, Northern Arc Capital, said, “We are delighted to partner with Zypp Electric in their mission to make last-mile logistics emission-free by using the ecosystem of electric vehicles and EV-based technology. It aligns well with our focus on supporting businesses that accelerate the adoption of sustainable energy.”
According to Zypp Electric, the company is growing its user base on Zypp rentals 300 per cent month-on-month with the plans expansion and investment on more scooters under its fleet. The company has already partnered with all industry leaders in the e-commerce segment across logistics, grocery, food and pharma sectors. The company currently delivers groceries, medicines, food, and e-commerce packages from point A to point B through their fully automated IoT and AI-enabled scooters which are low on maintenance and high on performance. The technology tracks batteries that can be replaced at Zypp swapping stations which are installed at key touchpoints.