Zypp Electric, an Indian startup, is gearing up for expansion into Southeast Asia with the help of a recent investment from Japanese oil and energy conglomerate ENEOS. The company plans to enter at least one Southeast Asian market by early next year as part of its goal to be present in 15 markets over the next two years. While the exact launch details for Southeast Asia are still being discussed, potential markets include Indonesia, Thailand, and the Philippines, with Indonesia likely to be the first market to launch in.
In addition to Southeast Asia, Zypp Electric is also considering a move into the Middle East as part of its global expansion strategy. However, specific details about the Middle Eastern launch have not yet been revealed. Currently, Zypp Electric operates in major Indian cities including Delhi, Bengaluru, Mumbai, and Hyderabad. The startup offers an EV-as-a-service platform that caters to e-commerce companies and gig workers, providing them with an app and software for fleet and delivery management, as well as a fleet of electric two-wheelers.
Gig economy workers account for approximately 28% of Zypp’s revenue, with the remaining business serving courier, e-commerce, food and grocery delivery, and ride-sharing companies such as Amazon, DHL, Uber, Swiggy, Zepto, and Zomato. The startup’s platform facilitates around 5 million deliveries per month.
Zypp Electric’s expansion plans also include the introduction of electric three-wheelers in Delhi and Bengaluru, with Mumbai soon to follow. The three-wheeler fleet already contributes 10% to the startup’s total revenue. Currently, Zypp has around 15,000 electric two-wheelers in Delhi, 5,000 in Bengaluru, 1,000 in Mumbai, and 500 in Hyderabad.
The company’s strategy involves going deeper into existing markets rather than launching in new cities with minimal presence. Zypp Electric aims to grow its fleet from 22,000 electric two-wheelers to 50,000 within the next year, and eventually expand to a fleet of 200,000 electric two-wheelers over the next two and a half years.
Zypp Electric has seen significant investment support, including a $25 million Series B round led by Taiwan’s battery-swapping company Gogoro. Other key backers include Goodyear Ventures, Google for Startups, and Shell E4. The company is already operationally profitable and expects to achieve EBITA positivity within six to eight months, followed by profit after taxes within 12 to 14 months.
With its ambitious expansion plans and strong financial outlook, Zypp Electric is positioning itself as a major player in the electric mobility space. By targeting markets in Southeast Asia and the Middle East, the company aims to capitalize on the increasing demand for sustainable transportation solutions in these regions. As the world shifts towards a greener future, Zypp Electric is poised to make a significant impact in the EV rental service sector.