Zypp Electric is seeking $40 million in capital from Tribe Capital for expansion and technology development. Revenue tripled in FY24. Vishesh Khurana, from Shiprocket, is launching a $250 million India fund. Raj Snehil Juneja has also joined the team.
Zypp Electric, a business that manages electric vehicle fleets for delivery companies and bike taxi operators, is in talks to secure $40 million in new funding headed by Silicon Valley-based fund Tribe Capital, according to two individuals familiar with the matter.
According to these sources, the Gurugram-based business is expected to be valued between $300 and 350 million. This is nearly double its previous valuation of $165-170 million, which was based on a $25 million loan and equity fundraising round led by Taiwan’s battery-swapping behemoth Gogoro in February 2023.
According to the Economic Times, “The company aims to raise funds for its Series C round…”This money is mostly intended to extend the company into more cities and develop new technology. Several foreign investors, including some previous supporters, are in discussions, according to one of the mentioned sources.
The company, which works with delivery platforms such as Amazon, Flipkart, Zomato, Blinkit, Swiggy, and Zepto, as well as bike taxi providers like Uber and Rapido, saw its sales nearly triple in FY24 to Rs 325 crore.
Tribe Capital, a major investor in e-commerce enablement company Shiprocket, is preparing to launch its $250 million India fund. It will be established as an alternative investment fund (AIF) based in New Delhi.
Tribe Capital’s ambitions to establish an India-focused fund were originally reported by ET in May 2023.
The investment firm, which has previously backed Indian startups such as Blackbuck, Khatabook, and Change Jar, has hired Shiprocket cofounder Vishesh Khurana to lead the India fund, as well as Raj Snehil Juneja, who founded early-stage investment firms First Unicorn Capital and Disruptors Capital.
Currently managing $1.6 billion in assets, Tribe Capital has mostly made investments in the enterprise software and fintech sectors, with some exposure to other industries like healthcare and cryptocurrencies.
While the firm’s India fund is likely to be sector-agnostic, it would invest in consumer internet, enterprise software, logistics, and fintech startups, according to people familiar with the subject.
In a recent interview with ET, Zypp Electric’s Gupta stated that the company expects to reach breakeven in the next 12-18 months, despite continuing to expand into new locations and business areas.
He added the company has expanded into three-wheeler transport operations for e-commerce companies and now has a fleet of 700-800 trucks. However, Zypp Electric’s major business is its two-wheeler EVs, which it sells to delivery firms, bike taxis, and gig workers.
The startup, which began as a bike rental service in 2017, now has over 20,000 electric scooters in its fleet, which are deployed to companies in four markets: Delhi-National Capital Region, Mumbai, Bengaluru, and Hyderabad. Zypp Electric plans to expand its service to two additional cities this year.
Currently, more than a third of Zypp Electric’s fleet is dedicated to food delivery platforms Zomato and Swiggy, followed by rapid commerce, bike taxis, e-commerce, and hyperlocal delivery.
In addition to Gogoro, the startup’s capitalization table includes major corporate venture capitalists and accelerators such as Goodyear Ventures and Shell E4.
