zip Electric, an EV-as-a-service platform, raised $1 million in debt funding from Northern Arch to expand its EV fleet services. The company aims to use debt as a new expansion funnel along with the existing leasing strategy as they plan to deploy 1.5 lakh e scooter in India by 2025
In a press statement issued, Bama Balakrishnan, COO, Northern Arc Capital, said, “We are delighted to partner with this. zip electric In its mission to make last mile logistics emission free by using the ecosystem of electric vehicles and EV based technology. This aligns well with our focus on supporting businesses that accelerate the adoption of sustainable energy.”
Zypp is growing its user base by 300% month on month on Zypp Rentals with plans to expand and invest on more scooters under its fleet. With over 5000 active electric vehicles, Zypp has partnered with e-commerce segments in the logistics, grocery, food and pharma sectors – such as Zomato, Swiggy, BigBasket, Amazon, Myntra, PharmEasy, Jiomart, Delhivery and Spencers’ sustainable in India to ensure last-mile delivery.
To learn more about Zypp Electric’s future plans, we chatted with Akash Gupta, Co-Founder and CEO of Zypp Electric. Here’s what he has to say.
1. What has been a major factor in this development of electric vehicles for last-mile delivery? Has the pandemic’s impact on the industry been positive as e-commerce picks up and focused on green mobility?
Today, logistics and last mile delivery contribute to the bulk of the trips in our country and therefore being on IC engines, these trips generate a lot of pollution and are very expensive. All these factors have led to a change in behavior amongst people and large e-commerce companies shifting their focus to more economical and sustainable mode of transport which is being brought by electric vehicles.
We already have partnerships with all major Logistics, E-commerce, Food, Grocery, Pharma delivery companies for last mile delivery services with our EVs. This partnership helps them quickly switch to electricity instead of buying a fleet of their own as it comes with its own challenges. We are expecting India’s last-mile segment to switch to 100% electric by 2030.
2. Where will Zypp use the recent funding?
With the recent funding, we plan to deploy 1.5 lakh e-scooters in India by 2025. In addition, expanding to several cities across the country. We are currently operating in Delhi-NCR, Bangalore and plan to add more e-scooters to our fleet including Hyderabad, Mumbai and Pune. We aim to inspire more fleets and delivery executives across the country to go electric.
3. Zypp plans to increase revenue by 100X over the next three years. What is the strategy to back this goal? How does the company plan to expand (geographically and in terms of EVs planned in the fleet)?
With a projected growth of 56.8% by 2025, India is a hot market for electric shared mobility. More and more businesses, especially accelerated ecommerce and logistics companies, are setting up a network of EVs for seamless point-to-point mobility. Keeping in mind the current market, we are increasing our supply to 150k EVs to meet the growing demand and Zypp’s positive EBITDA has also acted as a motivation that we are working in the right direction and investing. We are also working on the aspect of building our team and strategizing our venture in multiple cities across the country, resulting in the recent addition of Tushar Mehta as the Co-Founder and Chief Operating Officer (COO). promoted as we plan to accelerate our expansion. financial year.
4. There is a plan to run 1.5 lakh electric vehicles in the next 18 months. Would you share the names of the OEMs that Zypp has tied up with or are in talks with?
We are working in association with the country’s largest OEM, Hero Electric, as our official partner. While we want to onboard more vehicles every month, we want to partner with EV OEMs and plan to buy 2000 electric scooter For special tie-ups every month to further increase the supply.
5. Collaboration with local grocery stores and restaurants. Tell us more about this model.
We have already enabled MSMEs to switch to EVs through our association with local grocery stores and restaurants. We have API capability for any small merchant to get fast delivery through Zypp platform through EVs and trained drivers.
6. What parameters did Zypp consider while finalizing the electric vehicle to be added to its fleet?
At Zypp we prioritize the safety and comfort of our users which is why we go for customized e-scooters designed as per our requirements. For example, it should have a high speed scooter with double battery removable option and a mileage of 120 kms with good quality battery (LFP preferred) and the company’s commitment to after sales support. All our fleets are FAME and ARAI approved and go through a rigorous testing process before being inducted into our fleet. Plus, all the scooters have a 3-year warranty and are insured for the life of the bike.
7. What are the challenges faced by this industry, if any? Do you expect any government policy(s) that can help in faster EV adoption in the distribution sector?
Supply chain is one of the biggest challenges in the EV ecosystem today. An important point to note is that however we need to create an evolving ecosystem that can address all the challenges and help millions of businesses to adopt EVs seamlessly. We are stepping up our efforts to address supply chain challenges. We have strong and deep partnerships with the largest OEMs of Electric Vehicles in the country and already plan to enhance them with larger purchases.
The Delhi government has been visionary by introducing a new policy that mandates logistics and aggregators to go 100% electric by 2025, we can expect other state governments to follow suit. So, companies that weren’t looking at EVs aggressively may want to go electric quickly and expect more e-commerce platforms to pick up the EV momentum fairly aggressively. FAME and state subsidy and charging policies are welcome steps to push electric vehicles forward in the country.
In a press statement issued, Bama Balakrishnan, COO, Northern Arc Capital, said, “We are delighted to partner with this. zip electric In its mission to make last mile logistics emission free by using the ecosystem of electric vehicles and EV based technology. This aligns well with our focus on supporting businesses that accelerate the adoption of sustainable energy.”
Zypp is growing its user base by 300% month on month on Zypp Rentals with plans to expand and invest on more scooters under its fleet. With over 5000 active electric vehicles, Zypp has partnered with e-commerce segments in the logistics, grocery, food and pharma sectors – such as Zomato, Swiggy, BigBasket, Amazon, Myntra, PharmEasy, Jiomart, Delhivery and Spencers’ sustainable in India to ensure last-mile delivery.
To learn more about Zypp Electric’s future plans, we chatted with Akash Gupta, Co-Founder and CEO of Zypp Electric. Here’s what he has to say.
1. What has been a major factor in this development of electric vehicles for last-mile delivery? Has the pandemic’s impact on the industry been positive as e-commerce picks up and focused on green mobility?
Today, logistics and last mile delivery contribute to the bulk of the trips in our country and therefore being on IC engines, these trips generate a lot of pollution and are very expensive. All these factors have led to a change in behavior amongst people and large e-commerce companies shifting their focus to more economical and sustainable mode of transport which is being brought by electric vehicles.
We already have partnerships with all major Logistics, E-commerce, Food, Grocery, Pharma delivery companies for last mile delivery services with our EVs. This partnership helps them quickly switch to electricity instead of buying a fleet of their own as it comes with its own challenges. We are expecting India’s last-mile segment to switch to 100% electric by 2030.
2. Where will Zypp use the recent funding?
With the recent funding, we plan to deploy 1.5 lakh e-scooters in India by 2025. In addition, expanding to several cities across the country. We are currently operating in Delhi-NCR, Bangalore and plan to add more e-scooters to our fleet including Hyderabad, Mumbai and Pune. We aim to inspire more fleets and delivery executives across the country to go electric.
3. Zypp plans to increase revenue by 100X over the next three years. What is the strategy to back this goal? How does the company plan to expand (geographically and in terms of EVs planned in the fleet)?
With a projected growth of 56.8% by 2025, India is a hot market for electric shared mobility. More and more businesses, especially accelerated ecommerce and logistics companies, are setting up a network of EVs for seamless point-to-point mobility. Keeping in mind the current market, we are increasing our supply to 150k EVs to meet the growing demand and Zypp’s positive EBITDA has also acted as a motivation that we are working in the right direction and investing. We are also working on the aspect of building our team and strategizing our venture in multiple cities across the country, resulting in the recent addition of Tushar Mehta as the Co-Founder and Chief Operating Officer (COO). promoted as we plan to accelerate our expansion. financial year.
4. There is a plan to run 1.5 lakh electric vehicles in the next 18 months. Would you share the names of the OEMs that Zypp has tied up with or are in talks with?
We are working in association with the country’s largest OEM, Hero Electric, as our official partner. While we want to onboard more vehicles every month, we want to partner with EV OEMs and plan to buy 2000 electric scooter For special tie-ups every month to further increase the supply.
5. Collaboration with local grocery stores and restaurants. Tell us more about this model.
We have already enabled MSMEs to switch to EVs through our association with local grocery stores and restaurants. We have API capability for any small merchant to get fast delivery through Zypp platform through EVs and trained drivers.
6. What parameters did Zypp consider while finalizing the electric vehicle to be added to its fleet?
At Zypp we prioritize the safety and comfort of our users which is why we go for customized e-scooters designed as per our requirements. For example, it should have a high speed scooter with double battery removable option and a mileage of 120 kms with good quality battery (LFP preferred) and the company’s commitment to after sales support. All our fleets are FAME and ARAI approved and go through a rigorous testing process before being inducted into our fleet. Plus, all the scooters have a 3-year warranty and are insured for the life of the bike.
7. What are the challenges faced by this industry, if any? Do you expect any government policy(s) that can help in faster EV adoption in the distribution sector?
Supply chain is one of the biggest challenges in the EV ecosystem today. An important point to note is that however we need to create an evolving ecosystem that can address all the challenges and help millions of businesses to adopt EVs seamlessly. We are stepping up our efforts to address supply chain challenges. We have strong and deep partnerships with the largest OEMs of Electric Vehicles in the country and already plan to enhance them with larger purchases.
The Delhi government has been visionary by introducing a new policy that mandates logistics and aggregators to go 100% electric by 2025, we can expect other state governments to follow suit. So, companies that weren’t looking at EVs aggressively may want to go electric quickly and expect more e-commerce platforms to pick up the EV momentum fairly aggressively. FAME and state subsidy and charging policies are welcome steps to push electric vehicles forward in the country.