Zypp Electric raises $1Mn in debt funding from Northern Arc, also turns profitable

Zypp Electric, India's leading EV-as-a-service platform, today said that it has raised $1 million in debt funding from Northern Arc to expand its EV Fleet services. The company aims to use debt as a new expansion funnel along with the current leasing strategy as they plan to deploy 1.5 Lakhs e-scooters in India by 2025.

Zypp, through its continuous efforts to invest and strategize towards #MissionZeroEmission, has become the first EV logistics player to turn EBITDA positive business while also recording a 5x revenue annually.

Akash Gupta, Co-Founder & CEO, Zypp Electric, said "Zypp turning profitable is proof that we are on the right path and utilising our resources efficiently in the right direction. The best part is that we have achieved the EBITDA positive milestone along with a 5x revenue growth in this FY vs. last FY, also the achievement has come in when we've raised a fraction of capital vs. the other players in the mobility industry. We believe that as a growing start-up, this is a clear sign of strong foundational values and the future potential of our business model. Further, Northern Arc is a highly respectable financial services platform, and NBFC, with $1Mn debt raised from them, we've added another level of growth at much better IRRs as we accelerate closer to our vision of 100% EVs in the last mile in the country".

Bama Balakrishnan, COO, Northern Arc Capital, said "We are delighted to partner with Zypp Electric in their mission to make last-mile logistics emission-free by using the ecosystem of Electric Vehicles and EV-based technology. It aligns well with our focus on supporting businesses that accelerate the adoption of sustainable energy".

Being EBITDA positive is also a crucial parameter to foresee Zypp's growth. As a growing start-up, the company has planned its cash flow very tightly to meet the investor's expectations and gain users' trust.

Zypp is growing its user base on Zypp rentals at 300% month on month with the plans of expansion and investment in more scooters under its fleet. The company is not just the leader in the last mile delivery EV model but with 5000+ active EVs, it has provided a sustainable solution to the gig workers in the country. Zypp has already partnered with all industry leaders in the e-commerce segment across logistics, grocery, food, and pharma sectors - like Zomato, Swiggy, BigBasket, Amazon, Myntra, PharmEasy, Jiomart, Delhivery and Spencers to ensure sustainable last-mile delivery for the country.

Zypp Electric is India's Leading Tech-Enabled EV-as-a-Service platform, founded in 2017 with a Mission Zero-Emission and to make India carbon-free by using an ecosystem of Electric Vehicles and EV-based technology to make last-mile logistics sustainable and emission-free. Zypp Electric's business model is to make carbon-free last-mile delivery for local merchants to e-commerce giants to delivery executives and thereby reduce delivery cost and pollution on an asset-light model. The company currently delivers groceries, medicines, food, and e-commerce packages from point A to point B through their fully automated IoT and AI-enabled scooters which are low on maintenance and high on performance. The technology tracks batteries that can be replaced at Zypp swapping stations which are installed at key touchpoints. Eco-friendly EV services also reduce the cost per delivery and help to make the city pollution-free. Currently, it has over 5000 and increasing Zypp EVs and Pilots (delivery executives) working towards this mission.

Northern Arc Capital Limited is a platform in the financial services sector in India. Through technology and data, it provides a diverse set of solutions to cater to the credit requirements of emerging segments and small businesses. Its business model is diversified across offerings, sectors, products, geographies, and borrower segments.

Northern Arc has cumulatively raised over Rs 1 trillion in funds for its clients since the inception of its platform in 2009. Northern Arc's exposure was spread across 657 districts in 28 states and 7 Union Territories in India, as on March 31, 2021. It has disbursed a total of over 6 million loans to retail customers across individuals, households and small businesses.

It is backed by marquee private equity players like LeapFrog, IIFL, Accion, Augusta Investments (known as Affirma Capital), Dvara Trust, Eight Roads and Sumitomo Mitsui Banking Corporation.