Zypp Seeks Fresh Funding from Tribe Capital, Targeting $300-$350 Million Valuation
Zypp Electric, a startup specializing in managing electric vehicle fleets for delivery services and bike taxi companies, is currently negotiating to secure a new funding round of $40 million, primarily led by Tribe Capital, a venture capital firm based in Silicon Valley, according to sources familiar with the matter.
Positioned in Gurugram, the company is expected to reach a valuation between $300 million and $350 million, nearly doubling its previous mark of approximately $165 million to $170 million. This significant increase in valuation follows its February 2023 fundraising event, where Zypp Electric raised $25 million through a combination of debt and equity. This round was notably led by Gogoro, a leading player in battery-swapping technology based in Taiwan.
“The company is looking to raise funds for its Series C round…this money is primarily expected towards expanding the business into newer cities and building new technology. There are several global investors, including some existing backers, that are in discussions,” one of the persons cited above said.
Zypp Electric, a company that manages electric vehicle fleets for key delivery platforms such as Amazon, Flipkart, Zomato, Blinkit, Swiggy, Zepto, and bike taxi services including Uber and Rapido, has reported a near tripling of its revenue in FY24, reaching Rs 325 crore.
Neither Tribe Capital nor its co-founder Arjun Sethi responded to inquiries from ET. Similarly, attempts to contact Zypp Electric’s co-founder and CEO, Akash Gupta, remained unanswered.
Tribe Capital’s Strategic Moves in India
Tribe Capital, known for its significant investment in Shiprocket, an ecommerce enablement unicorn, is preparing to launch a $250-million fund targeted at Indian markets. This fund will operate as an Alternative Investment Fund (AIF) based out of New Delhi.
More EV News
The firm, which holds $1.6 billion in assets under management, has stakes in a variety of sectors including enterprise software, fintech, cryptocurrency, and healthcare. Its new India-focused fund will broadly target consumer internet, enterprise software, logistics, and fintech sectors. Tribe Capital plans to manage this fund from a local base in New Delhi to strengthen its presence and enhance its investment strategy across India.
Zypp Electric’s Expanding Operations
In a discussion with ET, Akash Gupta outlined Zypp Electric’s plans to reach breakeven within the next 12-18 months while continuing to grow its market presence. The company has recently expanded into three-wheeler cargo vehicles for ecommerce logistics, adding to its substantial fleet of 700-800 vehicles. While its primary focus remains on two-wheeler EVs for delivery and bike taxi services, Zypp Electric now boasts over 20,000 electric scooters across Delhi-NCR, Mumbai, Bengaluru, and Hyderabad, and plans to enter two additional cities this year.
A significant portion of its fleet, over one-third, is dedicated to serving food-delivery platforms such as Zomato and Swiggy. The company also supports sectors like quick commerce, bike taxis, ecommerce, and hyperlocal deliveries. Zypp Electric, initially launched in 2017 as a bike rental service, has attracted diverse investors including Goodyear Ventures and Shell E4. According to Tracxn, the founders hold nearly 41% of the equity, with Gogoro owning a 13% stake, followed by the India Angel Network Fund at 8.6%.
Content Credit: The Economics Times
