In-Depth What Will Drive Zypp Electric To INR 1000 Cr Milestone? 10 Mar'25 | By Bismah Malik SUMMARY Zypp Electric is one of the largest EV-as-a-Service companies, offering end-to-end fleet management solutions to corporates and startups Backed by a 168% surge in FY25 revenue, Zypp hopes to cross INR 1,000 Cr milestone this year as it gears up for an IPO in next two years The company plans to co-develop EVs in partnership with OEMs that would address the unique demands for fleet-based businesses FOLLOW US FOLLOW US Added to Saved Stories in Login VIEW SAVED STORIES Two phrases – often used, but not overused just yet, and certainly not misused – have come to redefine India’s booming startup economy over the last couple of years. If ‘quick commerce’ is the answer to the rapid acceleration in the way we live, then ‘as a service’ is the solution to our evolving lifestyle. And the two concepts have not just coexisted but helped each other thrive. As green became the new black, electric vehicles (EVs) emerged as one of the most sought-after industries for both entrepreneurs and investors. In step with the evolving dynamics in the startup ecosystem came EV-as-a-Service (EVaaS), which soon turned a promising vertical and was set to see explosive demand in the coming years. The government push for green mobility to cut down on fossil fuels has been driving the $54.4 Bn EV market in India at 2.4 times annual acceleration to reach $132.2 Bn by 2030. This has translated into heightened investments from venture capital firms and sealing of B2B and B2C partnerships in startups that pioneer EV services from vehicle leasing and fleet management to charging infrastructure and last-mile delivery logistics. Zypp Electric zeroed in on this opportunity since its birth in 2017. It transcended from leasing electric vehicles to providing end-to-end solutions for EV management to corporates, capturing both the B2B and B2C segments. The EV startup, a brainchild of Akash Gupta and Rashi Agarwal, has so far raised $55.5 Mn from the likes of Indian Angel Network, VCs, 100Unicorns, and Gogoro. It now plans to raise $35 Mn (INR 300 Cr) more from multiple investors, sources had earlier told Inc42. Zypp saw its revenue zoom 168% to INR 292.7 Cr in FY24 from INR 109.1 Cr a year back, though its net loss surged 125% to INR 91.1 Cr from INR 40 Cr. Agarwal, who is the chief business officer, said Zypp Electric is on course to cross the INR 1,000 Cr revenue milestone in FY25, making a substantial increase with an IPO on the horizon. “We are also confident that we will achieve EBITDA positivity within the year,” she told Inc42. While the EV startup has so far only been partnering with OEMs for leasing EVs to their clients, Agarwal said the company plans to co-develop EVs in partnership with OEMs in the near future. EV-as-a-Service has become an appealing proponent, especially catering to quick commerce, ecommerce and ride-hailing industries where fulfilling last-mile delivery capabilities is crucial. With the rapid adoption of quick commerce, she believes that electrification of delivery fleets will be a natural progression for these platforms where companies like Zypp Electric can chip in. Agarwal spoke to Inc42 as a part of the Griffin Dialogues series. Here are the edited excerpts from the conversation: Inc42: Zypp Electric has crossed an important revenue milestone in FY24, but the losses have continued to grow. Rashi Agarwal: In FY24, our revenue nearly doubled from the previous year. We closed the year with INR 290 Cr in revenue. Although we had initially targeted INR 480 Cr, this still represents an impressive 80% year-over-year growth trajectory. Our losses have not grown in proportion to our revenue growth. With each passing year, we are making strong strides towards EBITDA positivity and long-term profitability. Inc42: What have been the major drivers of this revenue surge? Where do you see the demand coming from? Rashi Agarwal: Zypp Electric operates in an industry-agnostic model, catering to multiple sectors, including ride-hailing, ecommerce, food delivery, and quick commerce. Demand has never been a challenge for us, rather, it has been accelerating rapidly, especially with the explosive growth of the quick commerce segment over the past year. As a result, Zypp Electric has solidified its position as a dominant and preferred EV-as-a-Service provider across industries. Our substantial revenue growth in FY24 has been driven by our ability to scale efficiently and secure partnerships with major ecommerce and mobility players. In fact, we have 60,000 to 80,000 Letters of Intent (LOIs) from clients, yet we have only been able to service about 20% of this demand. The key to our continued success lies in scaling our fleet, expanding operations strategically, and consistently meeting SLAs (service level agreements) to ensure seamless service delivery. With a strong demand pipeline, our focus remains on rapid-yet-sustainable expansion to bridge the gap between available fleet capacity and market needs. We are also aiming at higher operational efficiency, and expansion of our EV-as-a-Service model to drive profitability. Inc42: Big ecommerce companies have been developing their own delivery fleets. In such a scenario, how do you bank on partnerships with big corporates? Rashi Agarwal: Zypp Electric does not operate on a rental model for ecommerce clients. Instead, we provide comprehensive last-mile delivery solutions. Unlike simply leasing EVs, our model ensures seamless fleet management, optimisation, and high utilisation, which are essential for large-scale logistics operations. While major ecommerce players like Amazon and Flipkart have been in the industry for over a decade, they have largely relied on third-party logistics partners, rather than developing their own dedicated delivery fleets. Managing a large EV fleet goes beyond just procuring Vehicles – it requires a robust ecosystem of fleet utilisation, spare parts management, theft and vandalism control, rider sourcing, financing, and overall operational efficiency. We have a dedicated team of 1,400+ professionals solely focused on ensuring that our fleet runs at over 90% utilisation while meeting stringent SLAs. Given the complexities involved, we do not foresee major ecommerce companies shifting towards full-fledged fleet ownership. Even if some explore the possibility, the sheer scale of demand in the logistics space ensures that there is ample room for multiple players. Our focus remains on strengthening our partnerships with corporates by offering a scalable, cost-efficient, and sustainable last-mile delivery solution. Inc42: What is your strategy to go public, given the current market scenario? Have you set any timelines for an IPO? Rashi Agarwal: An IPO is definitely on the horizon for Zypp Electric. We are strategically working towards this goal with a clear focus on achieving profitability and strengthening our financial position. RECOMMENDED FOR yOU In-Depth PB Fintech’s Revenue Muddle Amid Healthcare Foray Nikhil S. 16th March, 2025 In-Depth From Zepto To Blinkit: Dark Patterns Behind The Quick Commerce Bo... Lokesh C. 16th March, 2025 In-Depth Indian Startup FY24 Financials Tracker: Tracking The Financial Pe... Debarghya S. 15th March, 2025 Our plan is to be IPO-ready by the end of next year, aligning our growth trajectory with market conditions and investor expectations. In the meantime, our priority remains on scaling operations efficiently, going EBITDA positive, and ensuring sustainable growth, which will position us well for a successful public listing. Inc42: We have seen Zypp raising money in quick succession from VCs. What, according to you, is so compelling about this company that makes it stand out even in an increasingly crowded EV-as-a-Service vertical? Rashi Agarwal: First, Zypp Electric is the largest EV-as-a-Service player in India, running a fleet of over 22,000 electric scooters across key cities like Delhi-NCR, Mumbai, and Bangalore. Next, what sets us apart is our ability to cater to a wide range of industries – from quick commerce and ecommerce to ride-hailing and logistics. Given the surge in demand, particularly from the quick commerce sector, Zypp Electric has positioned itself as an indispensable partner in the ecosystem. On the VC front, what makes Zypp compelling is our strong market positioning and our ability to choose the right partners. We are in a phase where companies want to work with us, and our ability to scale effectively puts us in a comfortable position for growth. The ecommerce sector in India still has a long way to go, with penetration at just 20-21%. As this sector expands, Zypp Electric is poised to grow in direct proportion, which makes us a highly attractive investment option. EV-as-a-Service is not just a trend, it is a necessity for the future of sustainable urban mobility. With growing demand and continued expansion in last-mile logistics, Zypp Electric is uniquely positioned to lead this space. Inc42: How do you see the EV regulations in India? The government has doled out incentives to EV makers. How much has this helped the industry? Rashi Agarwal: The government has been highly supportive of EV adoption, rolling out multiple incentives through central and state subsidies, including FAME I and FAME II. These initiatives provided a significant boost in the early stages of EV adoption, accelerating industry growth and making EVs more accessible. While subsidy support has gradually tapered, the government remains committed to pushing EV adoption through regulations and incentives. For instance, in Delhi, ecommerce companies are mandated to transition entirely to EVs by 2030. Such regulations set a strong precedent for other states to follow and can drive large- scale electrification. Additionally, the lower 5% GST on EV rentals is a great enabler for fleet expansion. However, there are areas where policy refinements can further accelerate EV adoption. On the taxation front, one key aspect is GST on last-mile delivery services by EVs, which is at 18%. Reducing this to 5% – in line with EV procurement and rentals – would incentivise ecommerce companies to switch to electric fleets more aggressively. A nationwide regulatory push, similar to Delhi’s mandate, would also be beneficial, as a large portion of two-wheelers on Indian roads today are used for last-mile deliveries. A structured approach, with clear timelines and incentives, can create a massive shift from ICE to EVs, significantly contributing to India’s sustainability goals. As an industry leader, Zypp Electric continued to work closely with stakeholders to drive this transformation at scale. Inc42: What kind of hurdles or challenges EV companies are facing? Rashi Agarwal: The EV industry has made significant progress, but there are still some challenges that need to be addressed to boost large-scale adoption and achieve operational efficiency. One of the major hurdles for fleet-based businesses like ours is the lack of the right vehicle that meets our unique demands. In the last-mile delivery segment, EVs often change from one rider to another, which leads to higher wear and tear, increased servicing needs, and operational downtimes. While the industry has made advancements in battery technology and vehicle durability, there is still a gap in developing a robust, long-lasting product tailored for high-utilisation business models. Another challenge is inadequacy of charging and battery-swapping infrastructure. While swapping is emerging as a scalable solution, ensuring seamless availability of charging points remains critical for sustained fleet efficiency. Additionally, financing solutions for EVs, including more accessible leasing and credit options for fleet operators and riders, are crucial for accelerating adoption. At Zypp Electric, we are continuously working with OEMs, battery providers, and infrastructure partners to address these challenges and enhance the EV ecosystem to make mass-scale operations efficient. Inc42: What is your long-term vision for Zypp and its employees? Rashi Agarwal: Our long-term vision at Zypp Electric is to drive a complete transition from internal combustion engine (ICE) vehicles to electric mobility, making last-mile logistics 100% sustainable. As a company, we are committed to not only accelerating EV adoption but also creating a strong ecosystem that supports clean and efficient transportation solutions. For our employees, this vision translates into continuous learning, innovation, and growth opportunities. We believe that the people at Zypp are at the heart of this transformation. We are building a workplace that fosters leadership, skill development, and career progression, ensuring that every individual contributes meaningfully to our mission. Our goal is to scale Zypp into the most trusted EV-as-a-Service platform, helping businesses across industries accelerate while empowering our workforce with the tools and opportunities to thrive in the evolving mobility landscape. We aim to redefine urban logistics, reduce carbon footprints, and create a cleaner, greener future for all. Inc42: You have recently announced partnerships with battery charging and battery swapping companies. What business partnerships do you plan ahead? Rashi Agarwal: As we expand our ecosystem, strategic partnerships remain key to Zypp Electric’s long-term vision. Apart from our recently announced collaborations with battery swapping companies, we have also forged deeper partnerships with OEMs. Given that one of our biggest challenges is getting the most robust and efficient EV for our operations, we aim to co-develop vehicles with OEM partners that are tailor-made for high-utilisation commercial use. We are also exploring partnerships with recycling and scrapping companies. As our fleet scales, vehicle lifecycle management will become crucial, and responsible disposal or second-life usage of batteries and EV components will be a natural next step. Through these collaborations, we aim to create a sustainable and circular EV ecosystem, ensuring that Zypp not only drives EV adoption but also builds a future-ready infrastructure for the industry. Inc42: How do you align your business goals with investor interests? What are the key learnings from your fundraising journey? Rashi Agarwal: Our business goals and investor interests are fundamentally aligned towards a single objective – building a profitable and self-sustaining company. We are working relentlessly towards making Zypp Electric profitable, and our plan to go public next year reflects our commitment to both long-term growth and investor value. Our fundraising journey has been a continuous learning experience. We have emerged more and more refined in terms of approach after every round – whether it’s understanding the key business metrics better, optimising operational efficiencies, or making necessary pivots based on market realities. In fact, we have pivoted our business model three times to align with industry demands, and many of these decisions were shaped by insights gained during our fundraising process. One key learning for me has been that founders should not get emotionally attached to a particular way of doing business. Adaptability is critical. No matter how strong is our initial conviction, if the market signals the need for change, we must be willing to pivot quickly. Many startups struggle because they resist the change for too long. At Zypp, our ability to make bold, Data-driven decisions swiftly have been instrumental in our success. Inc42: While you scale your business and generate wealth for the employees, as a leader how do you align this with personal wealth or investment ambitions? Rashi Agarwal: I firmly believe that true wealth is created by building and scaling businesses, not just by earning salaries. My goal has always been to generate wealth not just for myself, but also for my team and employees. A successful IPO in the next two years will play a crucial role in achieving this, allowing everyone who has contributed to Zypp’s growth to benefit from its success. On a personal level, I see wealth creation as a long-term strategy where the right investments play a crucial role. Compounding is a powerful tool, and having a well-diversified portfolio ensures stability and growth. One principle I strongly adhere to is focusing on what I truly understand – whether in business or in investments. If an expert can manage my investments better than I can, I believe it’s worth paying for that expertise, rather than taking unnecessary risks. Ultimately, wealth creation – no matter personal or professional – is about making informed, strategic decisions and surrounding yourself with the right people to execute them effectively. [Edited By Kumar Chatterjee]
