Exclusive: EV startup Zypp in talks to raise new funding from Tribe Capital at $300-350 million valuation

Zypp Electric, a startup that manages electric vehicle fleets for delivery firms and bike taxi operators, is in talks to raise a fresh round of funding of $40 million led by Silicon Valley-based fund Tribe Capital, two people in the know said.

The Gurugram-based startup is likely to be valued at $300-350 million, these people said. This is almost double from its last valuation of around $165-170 million, ascribed after its February 2023 fundraise of $25 million in a mix of debt and equity led by Taiwan’s battery-swapping giant Gogoro.

“The company is looking to raise funds for its Series C round…this money is primarily expected towards expanding the business into newer cities and building new technology. There are several global investors, including some existing backers, that are in discussions,” one of the persons cited above said.

The company – which works with delivery platforms including Amazon, Flipkart, Zomato, Blinkit, Swiggy, Zepto, in addition to bike taxi operators such as Uber and Rapido – has seen its revenue grow nearly three times in FY24 to Rs 325 crore.

Tribe Capital and its cofounder Arjun Sethi did not respond to queries sent by ET. Messages sent to Zypp Electric’s cofounder and CEO Akash Gupta went unanswered too.

Tribe Capital’s India bets

Tribe Capital, a major investor in ecommerce enablement unicorn Shiprocket, is set to introduce its $250-million India fund. It will be set up as an alternative investment fund (AIF) domiciled in New Delhi.

ET first reported about Tribe Capital’s plans to set up an India-dedicated fund in May 2023.

The investment firm, which has also backed Indian startups such as Blackbuck, Khatabook and Change Jar, has roped in Shiprocket cofounder Vishesh Khurana to lead the India fund, in addition to Raj Snehil Juneja, who has founded early-stage investment firms First Unicorn Capital and Disruptors Capital.

Tribe Capital, which has $1.6 billion in assets under management, has mainly invested in the enterprise software and fintech spaces, along with exposures to sectors such as cryptocurrency and healthcare.

While the firm’s India fund is expected to be sector agnostic, it will pick stakes in companies involved in the consumer internet, enterprise software, logistics and fintech sectors, people aware of the matter said.

Currently, Tribe Capital manages its investments from San Francisco, where it’s based, but having a local team and a geography-focused fund would help it increase its bets in India, which have so far been selective, a person said.

Zypp Electric’s performance
In a recent interaction with ET, Zypp Electric’s Gupta said the company aims to achieve breakeven level in the next 12-18 months, even as it continues to expand into new cities and business lines.

He said the company recently ventured into three-wheeler cargo operations working for ecommerce companies, and currently has a fleet of 700-800 vehicles. However, Zypp Electric’s mainstay business is its two-wheeler EVs, which it provides to delivery companies and bike taxis along with gig workers.

The company, which was launched in 2017 first as a bike rental service, currently has over 20,000 electric scooters in its fleet deployed to various companies across four markets – Delhi-National Capital Region, Mumbai, Bengaluru and Hyderabad. Zypp Electric expects to expand its service to two more cities this year.

As of now more than a third of Zypp Electric’s fleet is deployed for food-delivery platforms Zomato and Swiggy, followed by quick commerce, bike taxi, ecommerce and hyperlocal delivery.

In addition to Gogoro, the startup has other corporate venture investors and accelerators on its capitalisation table, including Goodyear Ventures and Shell E4.

According to Tracxn data, the company’s founders own almost 41% stake in the company, with Gogoro holding 13% stake, followed by India Angel Network Fund at 8.6%.