Zypp Electric plans 2 lakhs scooter on road by 2025
- ByStartupStory | November 8, 2022
Zypp Electric, which has a platform called EV-as-a-Service (EVaS), wants to put 200,000 electric two-wheelers (E2Ws) in use across the country by December 2025.
The Gurugram-based start-up wants to grow to cities like Mumbai, Pune, Jaipur, Hyderabad, Calcutta, Chennai, and Ahmedabad. It uses electric scooters to make last-mile deliveries for companies.
“We offer our customers the EV+Rider service, which helps them lower their last-mile delivery costs and keep their customers from leaving. We now make more than 1.5 million deliveries every month and have saved about 29 million kilograms of CO2 so far. Akash Gupta, the co-founder of Zypp Electric, says, “Every month, we add 1,000 vehicles, and there are plans to deploy 100,000 vehicles in the next 18 months and double that number by December 2025.”
Zypp Electric scooter started in 2017 and uses IoT and AI-enabled scooters to move groceries, medicines, food, and packages from point A to point B. Its technology also keeps track of batteries that can be swapped out at Zypp swapping stations. Zypp has teamed up with leasing companies to help its driver partners buy cars. This is part of its “asset-light” business model.
The EVaS provider is in talks with Ola Electric, Okinawa, and Ather about getting more cars to add to its fleet. “We’re happy to work with a mix of three to four key OEMs that can follow our product, service, and pricing guidelines,” Gupta said.
It has a fleet of 8,000 vehicles, most of which are in Delhi, NCR (7,400) and Bengaluru (2,000). (600). Sixty percent of the fleet is Hero Electric’s Nyx e-scooter, but a few batches have come from OEMs like SES, Gemopia, Lohia, and Kinetic Electric.
“We’re basically trying to figure out how to make the last mile of delivery electric because that’s where the most pollution is made.” “That’s where the drivers are hurting,” said Gupta.
Zepto, BigBasket, Blinkit, Zomato, Porter, Uber, Rapido, Dunzo, Grofers, and JioMart are some of the big B2B companies that Zypp works with.
“We’re trying to get our Zypp Electric scooter sharing app to be used for all e-commerce, grocery, medicine, and food deliveries in the last mile. That will make sure that last-mile delivery is cheaper, faster, and doesn’t release any pollution. Gupta said, “Flipkart, Amazon, Udaan, Dominos, Snapdeal, Haldiram, Shiprocket, and Box8 are among the customers we plan to work with in the future. We also want to work with other D2C and hyperlocal brands that need delivery solutions.”
Zypp Electric scooter recently made a deal with Gogoro to offer battery swapping services as a pilot in Delhi and NCR.
Gupta says, “This is a partnership for driver partners who want to go 200 km on a single charge and swap batteries.” At the moment, they can only go 100–120 km on a single charge, so the only other option is to swap batteries. Otherwise, bikes with fixed batteries have to wait three to four hours to be charged. For this pilot project, we will use 100 vehicles and about six places to swap them out.
Zypp Electric scooter has raised about $9 million in equity and $5 million in bike leasing, and it is almost done with Series B funding, where it plans to raise $25–30 million.
Its current Annual Run Rate (ARR) is about $15 million, and by December 2024, it is expected to have an ARR of $500 million. With a revenue of Rs 22.35 crore in FY22, it is on track to make more than Rs 100 crore in FY23.
Annual Run Rate is the same thing as Monthly Recurring Revenue but for the whole year (MRR).
“Since last year, our fleet size has grown 10 times, from about 600 e-scooters in April 2021 to 6,000+ e-scooters in May 2022, and our annual recurring revenue has grown from $1.5 million to $15 million.” Our goal is to speed up last-mile delivery so that EVs can be used for all deliveries by 2025. We think that by FY24, we will have made Rs 1 trillion. We expect to make a net profit beginning in October 2023,” said Gupta.
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