Exclusive | Zypp Electric looks to double Series C fundraise to $50 million: Sources

Delhi NCR-based electric two-wheeler rental startup Zypp is learnt to be in talks to more than double its Series C round to $50 million. Sources tell CNBC-TV18 that Zypp Electric has already secured $10 million from Nuvama Wealth & Investment and $10 million from a US-based VC. It has since approached other domestic investors and international private equity firms to add to its kitty.

This move, we learn, comes on the back of the company seeing strong demand for its EV-as-a-service business model, especially in the wake of a boom in India’s quick commerce, e-commerce and food delivery landscape. Sources add that these funds will be used to enter new cities in keeping with current and emerging trends in the e-commerce and quick commerce markets.

CNBC-TV18 also learns that these expansion plans are being seen as crucial if the company is to meet its internal targets of an IPO in the next 12-24 months.

These expansion plans include expanding its fleet of electric 2-wheelers to 100,000 from the current 20,000-odd—15,000 in Delhi NCR, 4,000 in Bengaluru, and 1,200 in Mumbai.

Zypp Electric declined CNBC-TV18’s request for a comment on this story.

The latest fundraising round follows a successful $15 million fundraise in May 2024; that round was led by Japanese major ENEOS. Existing investors, including 9Unicorns, IAN Fund, Venture Catalysts, WFC, and others, also participated. The firm has raised a total of $55 million until date.

Founded by Akash Gupta and Rashi Agrawal in 2017, Gurugram-based Zypp Electric reported a 2.6x increase in scale, with revenues from operations surging to ₹293 crores in FY24 from ₹109 crores in FY23. Sources add that with these funds the company is targeting ₹905 crores in revenues by FY26.