Electric vehicle

Zypp Electric’s Revenue Soars 2.7X in FY24, But Net Loss Widens

• ByStartupStory     |    November 2, 2024

Delhi NCR-based Zypp Electric, an electric two-wheeler startup, reported a remarkable surge in operating revenue for the financial year ended March 31, 2024, achieving a 2.7X increase. The company, led by Akash Gupta, recorded revenues of INR 292.7 crore in FY24, marking a significant rise of 168% from INR 109.1 crore in the previous fiscal year.

Zypp Electric primarily generates revenue by renting its electric vehicles (EVs) to delivery executives of e-commerce companies. The startup collaborates with major players such as Swiggy, Zomato, and BigBasket, among others, to enhance last-mile delivery solutions.

When including other income, Zypp Electric’s total revenue jumped to INR 302.6 crore in FY24 from INR 111.5 crore the previous year.

Founded in 2017 by Gupta and Rashi Agarwal, Zypp Electric provides e-scooters to local merchants and e-commerce companies for their delivery needs. It boasts a diverse client list that includes Swiggy, Zepto, Flipkart, Rapido, Blinkit, Zomato, Uber, and Amazon.

Despite the impressive revenue growth, Zypp Electric reported a net loss that surged 125% to INR 91.1 crore in FY24, up from INR 40 crore in FY23.

Expenditure Breakdown

In tandem with its revenue growth, Zypp Electric’s total expenditure rose significantly by 160% to INR 394 crore, up from INR 152 crore in FY23.

Employee Benefit Expenditure: The startup’s employee costs increased 112% to INR 46.5 crore from INR 22 crore in FY23.

Rent: Zypp Electric’s rent expenses skyrocketed over fourfold to INR 27.3 crore in FY24 from INR 6.5 crore in the previous year, reflecting an expansion in warehouse space for storing its EV fleet.

Miscellaneous Expenses: This category emerged as the startup’s largest expense, encompassing a variety of costs. It increased by 181% to INR 274.1 crore from INR 97.5 crore in FY23, though Zypp Electric did not provide a detailed breakdown of these expenses.

Zypp Electric claims to operate a fleet of over 20,000 EVs across Delhi NCR and Bengaluru, with expansions into Hyderabad and Mumbai initiated last year. Additionally, the company ventured into the cargo three-wheeler space in 2023 and reportedly has over 750 three-wheeler EVs in its fleet.

Earlier this year, Inc42 exclusively reported that Zypp Electric raised $15 million from Japanese energy giant ENEOS, marking ENEOS’s first investment in an Indian startup. To date, Zypp Electric has secured approximately $75 million in multiple funding rounds, with notable backers including Gogoro, Venture Catalysts, LetsVenture, IAN, Ivy Growth, and We Founder Circle.

In a competitive landscape, Zypp Electric faces rivals like Yulu, Euler Motors, EMotrad, and Zen Mobility as it strives to establish itself as a leader in the electric vehicle sector.

 

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