Hyperlocal and EV-based last mile delivery start-up Zypp Electric on Monday said it has raised USD 1 million in debt funding from Northern Arc to expand its EV fleet services. The company said it will utilise debt as a new expansion funnel along with current leasing strategy as they plan to deploy 1.5 lakh e-scooters in India by 2025.
“The start-up has now become the first EV logistics player to turn EBITDA or earnings before interest, taxes, depreciation, and amortization, positive while also recording a 5x revenue annually, Zypp said in a statement.
“As a growing start-up, the company has planned its cash-flow very tightly to meet the investor’s expectations and gain users’ trust,” it further stated.
Launched in 2017, the Gurugram-based start-up earlier in September last year raised USD 7 million in Series-A funding round.
Commenting on the fundraise, 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… 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 per cent 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”.