Zypp Electric expects five-fold jump in turnover to Rs 25 crore

Zypp Electric, which operates in the last-mile delivery space, is expecting its turnover to jump five-fold to Rs 25 crore during this fiscal while it plans to deploy one lakh electric vehicles in 2022, the company said on Tuesday.

Currently, the company works with top grocery, medicines, food, and e-commerce players and other quick commerce companies in cities such as Delhi-NCR, Bengaluru, Hyderabad, Mumbai and Pune.

Launched in 2017, the Gurugram-based start-up earlier in September this year raised USD 7 million in Series-A funding round.

The company currently has 5,000 electric vehicles (EVs) in the Delhi-NCR region and plans to expand to one lakh EVs in the next 18 months in the top-10 cities of India, Zypp Electric said in a statement.

It stated that the company's audited revenue in the last fiscal was Rs 5 crore.

Zypp said it is now looking to close the current financial year at over Rs 25 crore, which will be five times more than the revenue of FY21.

Besides, the company converted more than 1.1 million shipments from internal combustion engines to electric in the previous fiscal with plans in place to do four million pollution-free deliveries by March 2022, it said.

In addition, the core team has grown three times in the last one year to 150 members from 50, it said.

It added that to scale up further EV adoption, the firm expects to grow three times further as they expand to one lakh EVs and hire 450-500 employees, largely in technology and operations.

Zypp Electric co-founder CEO Akash Gupta said, "Our revenue has jumped more than five times to Rs 25 crore this fiscal year, from Rs 5 crore the year ago. Going by the current monthly run rate, the company expects to end the year at USD 6 million ARR (annual recurring revenue)."

He said the business has a huge focus on driving the right unit economics and getting a positive contribution margin even as the scale grows 10 times.