Two phrases – often used, but not overused just yet, and certainly not misused – have come to redefine India’s booming startup economy over the last couple of years. If ‘quick commerce’ is the answer to the rapid acceleration in the way we live, then ‘as a service’ is the solution to our evolving lifestyle. And the two concepts have not just coexisted but helped each other thrive.

As green became the new black, electric vehicles (EVs) emerged as one of the most sought-after industries for both entrepreneurs and investors. In step with the evolving dynamics in the startup ecosystem came EV-as-a-Service (EVaaS), which soon turned a promising vertical and was set to see explosive demand in the coming years.

The government push for green mobility to cut down on fossil fuels has been driving the $54.4 Bn EV market in India at 2.4 times annual acceleration to reach $132.2 Bn by 2030. This has translated into heightened investments from venture capital firms and sealing of B2B and B2C partnerships in startups that pioneer EV services from vehicle leasing and fleet management to charging infrastructure and last-mile delivery logistics.

Zypp Electric zeroed in on this opportunity since its birth in 2017. It transcended from leasing electric vehicles to providing end-to-end solutions for EV management to corporates, capturing both the B2B and B2C segments.

The EV startup, a brainchild of Akash Gupta and Rashi Agarwal, has so far raised $55.5 Mn from the likes of Indian Angel Network, VCs, 100Unicorns, and Gogoro. It now plans to raise $35 Mn (INR 300 Cr) more from multiple investors, sources had earlier told Inc42.

Zypp saw its revenue zoom 168% to INR 292.7 Cr in FY24 from INR 109.1 Cr a year back, though its net loss surged 125% to INR 91.1 Cr from INR 40 Cr.

Agarwal, who is the chief business officer, said Zypp Electric is on course to cross the INR 1,000 Cr revenue milestone in FY25, making a substantial increase with an IPO on the horizon. “We are also confident that we will achieve EBITDA positivity within the year,” she told Inc42.

While the EV startup has so far only been partnering with OEMs for leasing EVs to their clients, Agarwal said the company plans to co-develop EVs in partnership with OEMs in the near future.

EV-as-a-Service has become an appealing proponent, especially catering to quick commerce, ecommerce and ride-hailing industries where fulfilling last-mile delivery capabilities is crucial. With the rapid adoption of quick commerce, she believes that electrification of delivery fleets will be a natural progression for these platforms where companies like Zypp Electric can chip in.

Agarwal spoke to Inc42 as a part of the Griffin Dialogues series.

Here are the edited excerpts from the conversation:

Inc42: Zypp Electric has crossed an important revenue milestone in FY24, but the losses have continued to grow.

Rashi Agarwal: In FY24, our revenue nearly doubled from the previous year. We closed the year with INR 290 Cr in revenue. Although we had initially targeted INR 480 Cr, this still represents an impressive 80% year-over-year growth trajectory.

Our losses have not grown in proportion to our revenue growth. With each passing year, we are making strong strides towards EBITDA positivity and long-term profitability.

Inc42: What have been the major drivers of this revenue surge? Where do you see the demand coming from?

Rashi Agarwal: Zypp Electric operates in an industry-agnostic model, catering to multiple sectors, including ride-hailing, ecommerce, food delivery, and quick commerce. Demand has never been a challenge for us, rather, it has been accelerating rapidly, especially with the explosive growth of the quick commerce segment over the past year. As a result, Zypp Electric has solidified its position as a dominant and preferred EV-as-a-Service provider across industries.

Our substantial revenue growth in FY24 has been driven by our ability to scale........

© Inc42