Zypp Electric, a leading electric vehicle (EV) fleet management company, is reportedly in advanced discussions to secure an additional $25-30 million in funding. The round is expected to be led by Nuvama Wealth, an asset management firm, according to sources. This ongoing funding round also includes participation from Tribe Capital, a Silicon Valley-based investor. Zypp Electric previously raised $15 million in May last year as part of the same round, led by Japanese energy firm Eneos. The company's valuation at the time was estimated to be between $250 million and $260 million.

IPO preparations and domestic investor focus

Zypp Electric is laying the groundwork for an initial public offering (IPO) planned within the next year. To that end, the company has started onboarding domestic investors. Alongside Nuvama Wealth, prominent stock market players and high-net-worth individuals (HNIs) are expected to join the funding round.

Scaling operations 

As a key player in India’s burgeoning quick commerce sector, Zypp Electric collaborates with companies like Swiggy, Zomato, and Zepto by providing electric two-wheelers and delivery riders. The company currently operates a fleet of around 20,000 vehicles and aims to expand this number to over 100,000 by next year. Founded by Akash Gupta, Rashi Agarwal, and Tushar Mehta, Zypp Electric plans to increase its presence to 15 cities as it intensifies its focus on quick commerce. “The rapid growth of this sector has significantly benefited downstream segments like EV fleet management,” noted a person familiar with the company’s strategy.

Fleet utilisation and revenue growth

More than one-third of Zypp Electric’s fleet is deployed with food delivery platforms like Swiggy and Zomato. The remaining vehicles are used for quick commerce, bike taxi services, e-commerce, and hyperlocal deliveries. In FY24, the company’s operating revenue surged to ₹293 crore, a significant increase from ₹109 crore in FY23. However, losses also widened during the same period, rising to ₹91 crore from ₹40 crore, as per financial data filed with the Registrar of Companies (RoC).