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Zypp Electric Eyes Southeast Asia Expansion with $15M Series C Funding Led by ENEOS

A banner featuring the logo and branding of Zypp, an electric scooter service. The left side displays the Zypp logo in large white letters on a green background. On the right, a stylized illustration shows a lineup of electric scooters in green and black, docked at a charging station adorned with the Zypp logo and lightning bolt symbols, set against a background of abstract green shapes and leaves, indicating an eco-friendly service.
By
Anurag Trivedi

Zypp Electric, an Indian startup specializing in EV rentals, is poised to expand into Southeast Asia early next year, following a significant investment from Japanese oil and energy giant ENEOS, according to TechCrunch. With plans to enter 15 markets within the next two years, Zypp Electric is gearing up to pilot its services in at least one Southeast Asian country. Akash Gupta, the co-founder and CEO, shared these details in an exclusive interview with TechCrunch. This move is supported by a $15 million lead investment from ENEOS as part of Zypp Electric’s ongoing Series C funding round, which is expected to close between $35 million and $40 million in the next six to eight weeks.

Zypp Electric is targeting countries like Indonesia, Thailand, and the Philippines, which have a high demand for two-wheeler transportation and delivery services. Indonesia is set to be the first of these markets. Gupta noted that the company is exploring several strategies for the Southeast Asia launch, details of which will be outlined in the coming quarters.

Additionally, the startup is considering an expansion into the Middle East, although specific plans are still in the preliminary discussion phase.

Based in Gurugram, Zypp Electric currently operates in major Indian cities including Delhi, Bengaluru, Mumbai, and Hyderabad. The company provides an EV-as-a-service platform that caters to e-commerce and gig economy workers. This platform features an app and software that aid in fleet and delivery management, and includes a fleet of electric two-wheelers. Approximately 28% of Zypp’s revenue comes from gig workers who rent ebikes on a daily, weekly, or monthly basis. The rest of the revenue is generated from services to companies in courier, e-commerce, food delivery, and ride-sharing sectors such as Amazon, BigBasket, DHL, Uber, Swiggy, Zepto, and Zomato, supporting around 5 million deliveries each month.

Zypp Electric plans to significantly increase its fleet from 22,000 to 50,000 electric two-wheelers within a year, and aims for a total of 200,000 by the end of 2025. The startup had initially planned to expand into 30 Indian cities by 2025 but has since shifted focus to deepen its market penetration.

The company has also introduced electric three-wheelers in Delhi and Bengaluru, with plans to launch in Mumbai soon. These three-wheelers already account for 10% of Zypp’s total revenue.

In a previous funding round in February last year, Zypp Electric raised $25 million in Series B funding led by Taiwan's battery-swapping company Gogoro, with additional support from Goodyear Ventures, Google for Startups, and Shell E4.

Gupta affirmed that Zypp Electric is operationally profitable and anticipates reaching EBITA (earnings before interest, taxes, and amortization) positivity within six to eight months, and profitability after taxes within 12 to 14 months.