Inside Zypp Electric’s Bold Diversification Drive Beyond India’s Tier I

With Zepto, Blinkit, and Instamart sprinting to win the doorstep-delivery race, EV startups are emerging as the real winners. And as escooters become the new last-mile delivery workhorses, Zypp Electric is benefiting like no other.

With just 6,000 EVs in 2022, the startup has now grown to a fleet of more than 20,000 vehicles. To grow faster, it has set a roadmap to ply 1 Lakh vehicles in the next two to three years, besides expanding its footprint to 15 cities from the current five. 

According to Zypp cofounder and CEO Akash Gupta, the path towards its goal is simple — follow the road where quick commerce deliveries go. 

And with quick commerce now making waves beyond tier I cities and towns of India, the EV rental platform is focussed on expanding its presence to tier II areas, starting with Jaipur.

However, this is not Zypp’s first stab at such a bet. 

In 2022, the startup aimed to have a fleet of 1.5 Lakh scooters across 18 cities by 2025. While it has fallen way short of its targets, Zypp’s current state tells a different story — one of diversifying revenue streams and improved unit economics.

After nearly eight years on the road, the Delhi NCR-based startup claimed it had finally achieved operational profitability in July. Its EBITDA margin improved in FY25 to -13.2% from -19.3% in FY24. It stood at around 2% for September 2025.

Its top-line growth remained steady last year. In FY25, Zypp’s revenue jumped 48.2% year-on-year (YoY) to INR 448 Cr. In FY24, it stood at INR 302.6 Cr, which was up more than 2.7X from INR 111.5 Cr in FY23.

Beyond Tier I growth, Zypp is monetising its delivery fleet by turning its delivery fleet into rolling billboards for other startups and integrating its tech stack into an AI-powered platform for other operators.

Charting A Sustainable Growth Path

To understand how Zypp is charting a sustainable growth path for itself, it is important to decode the startup’s business model. The EV startup runs on a dual-revenue model — rental income and delivery commissions. 

At its core, Zypp operates as an EV tech platform that rents out electric two-wheelers to delivery partners for a daily fee of around INR 250. 

With nearly 20,000 riders using these vehicles every day, this rental business forms the company’s revenue backbone.

Deliveries are the second revenue source. Through the Zypp Pilot app, the startup connects riders with its quick commerce partners, including Zomato, Zepto, Blinkit, Rapido, BBNow, and Porter. 

Every time a delivery is completed via its app integrations, Zypp keeps a portion of the commission and shares the remaining with the rider partners.

The startup is soon expected to undergo some changes. It is diversifying from its existing model. It has added advertising and SaaS as two other verticals to generate more income.

“Now our scooters and helmets have ads on them. The likes of Paytm, Rapido, Swiggy, and LeverageEdu have featured themselves on our helmets and scooters, which is clearly a new revenue line getting built up,” said Gupta.

Launched in July 2025, Zypp ads have already generated a revenue of INR 30 Lakh in the ongoing fiscal year (FY26).

Besides, the startup is soon launching its fleet management software, FleetEase.ai, to help small fleet operators manage their fleet and entire vehicle lifecycle in a unified manner. 

Zypp’s AI platform, FleetEase.ai, is expected to contribute at least INR 60 Lakh for the entire FY26.

Besides, the startup has made multiple operational changes to improve efficiency. For instance, Zypp has moved away from charging vehicles to EVs equipped with swappable batteries. This small shift has helped its driver partners to cover more kilometres. Zypp, in turn, expects to also improve its unit economics.

AI At Zypp’s Core 

Over the years, Zypp has built a technology backbone to manage every moving part of its EV fleet — from vehicles and riders to maintenance and uptime. This in-house system tracks who’s riding which vehicle, verifies KYC details, monitors spare parts, and ensures each EV stays on the road with a high uptime of about 85–90%.

Now, Zypp is democratising its use via FleetEase.ai for other smaller fleet operators. Third-party fleet operators can now run their own EV businesses efficiently, where Zypp’s AI platforms offer them insights into the total cost of ownership, vehicle usage, maintenance needs, and operational performance.

Fleet owners can license this software at a subscription fee starting at INR 149 per vehicle per month, with advanced features priced up to INR 499. In short, Zypp is turning its operational know-how into a scalable SaaS product for India’s growing EV ecosystem.

Mumbai-based Rilox E-Mobility, Delhi NCR-based Zevo, and a few other EV fleet operators have already been onboarded as customers for Zypp’s FleetEase.ai. What’s interesting is that instead of seeing the emerging smaller players as competitors, Zypp is making them customers to grow its revenue base.

“We’re also in talks with a few potential international clients who plan to use our platform to manage and optimise their own fleets,” Gupta said.

Zypp Goes Both Deep & Wide 

The EV startup is clearly planning ahead — to make the most of the quick commerce surge now and stay resilient as the market matures or even as the growth starts to saturate.

Besides its new revenue streams, Zypp diversified its fleet beyond two-wheelers in 2023, and it is growing in numbers. 

For the period ending March 2026, Zypp’s total usable fleet will be around 26,700, with 900 three-wheelers. Last year, the three-wheeler count stood at 750. 

With this, Zypp, today, not only competes with Yulu, Baaz and EVeez but also three-wheeler cargo providers and fleet operators like Alt Mobility, Porter and Magenta Mobility. 

The startup has also changed its asset management strategy. 

Earlier, Zypp relied entirely on leased vehicles — a far costlier model. Now, it runs half of its fleet on leases, while the other half is financed through bank debt.

“Initially, it was difficult for us to convince the banks to underwrite and lend money for buying EVs, but after we crossed the INR 100 Cr benchmark about two and a half years ago, banks are willing to work with us,” the CEO added.

Gupta did not share the cost of procuring vehicles from their manufacturers, Odysse and e-Sprinto. 

Zypp has 220 mechanics on its payroll to fix any downtime issues. The startup has also built 20 hubs across the cities it’s present in to ensure quick service.

With a strong tech-enabled approach and strategic business moves, Zypp aims to close FY26 at INR 600 Cr in revenue, with full EBITDA profitability.

With much on its plate, Zypp positions itself to walk down the D-Street aisle in the next two years. But, for now, leveraging its new revenue channels would be key.

[Edited By Shishir Parasher]