Zypp Electric, which operates in the last-mile space, on Monday said it has raised USD 1 million (about Rs 7.6 crore) in debt funding from Northern Arc to expand its electric vehicle (EV) fleet services as it is looking to deploy 1.5 lakh e-scooters in the country over the next three years.
Zypp is growing its user base on Zypp rentals at 300 per cent month-on-month with the plans of expansion and investment on more scooters under its fleet, it said.
The company aims to use debt as a new expansion funnel along with the current leasing strategy as it plans to deploy 1.5 lakh e-scooters in India by 2025, it added.
"Zypp turning profitable is proof that it is on the right path and utilizing its 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 compared to the last FY,” Akash Gupta, Co-Founder, and CEO, Zypp Electric said.
"We believe that as a growing startup, 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 an NBFC, with USD 1 million debt raised from them, we've added another level of growth at much better IRRs as we accelerate closer to our vision of 100 per cent EVs in the last mile in the country," he added.
Zypp, through its continuous efforts to invest and strategize towards mission zero emission, has become the first EV logistics player to turn EBITDA positive business, the company claimed in the statement.
"We are delighted to partner with Zypp Electric in their mission to make last-mile logistics emission-free by using the ecosystem of EVs and EV-based technology. It aligns well with our focus on supporting businesses that accelerate the adoption of sustainable energy,” Bama Balakrishnan, COO, Northern Arc Capital said.
Backed by marquee private equity players like LeapFrog, IIFL, Accion, Augusta Investments (known as Affirma Capital) and Sumitomo Mitsui Banking Corporation, among others, Northern Arc Capital Limited provides a diverse set of solutions to cater to the credit requirements of emerging segments and small businesses.
It has cumulatively raised over Rs 1 lakh crore in funds for its clients since its inception in 2009.