Zypp Electric targets 5x fleet in 2-3 years: Cofounder and CEO Akash Gupta

Gurugram-based EV-as-a-service startup Zypp Electric is preparing for a major scale-up as it targets an initial public offering (IPO) amidst its nationwide expansion, founder and CEO Akash Gupta said in an interaction on Monday.

 

The company, which currently operates 20,000 electric two-wheelers across Delhi-NCR, Bengaluru, and Mumbai, plans to expand its fleet five-fold to 100,000 vehicles over the next two to three years.

 

The company aims to enter 25 cities and capture 10-12 per cent of all last-mile deliveries in these markets. Zypp already holds 12-13 per cent market share in Delhi, 6-7 per cent in Bengaluru, and around 4 per cent in Mumbai including ICE vehicles.

 

On an EV only basis, Zypp accounts for 60-65 per cent share in these cities, Gupta said.

 

Gupta added that Zypp has achieved profitability and is now targeting ₹1,000 crore in revenue in the next financial year, supported by 12-15 per cent earnings before interest, taxes, depreciation, and amortisation (ebitda) margins. To fuel this next phase of growth, the company is planning a $50-60 million pre-IPO round, ahead of its public market debut expected in the near term.

 

A key driver of Zypp’s scale has been its Foco (franchise-owned company-operated) model, which has attracted strong investor interest with 40-50 per cent assured returns over a 36-month cycle. With reinvestment of monthly payouts into SIPs or mutual funds, Gupta said investors can potentially earn 80-100 per cent returns.

 

Under the model, an investor putting in ₹45 lakh for 100 EVs receives a monthly payout of ₹1.6-1.9 lakh, adding up to ₹60-66 lakh over three years.

 

“Since the returns come monthly, investors can reinvest that money to maximise total ROI,” Gupta explained.

 

Zypp relies heavily on partnerships to maintain scale and operational efficiency. It works with OEMs Odysse Electric and e-Sprinto, from whom it has already sourced over 5,000 vehicles and plans to procure 20,000 more from each over the next few years. On the battery-swapping front, it partners with Indofast and Mooving, while financial support comes from HDFC Bank, Axis Bank, and the Shell Foundation, which recently extended a $1 million low-cost debt line owing to Zypp’s clean mobility impact.

 

The company operates without a dealer model. Instead, it purchases or leases EVs directly and offers them on a rental basis to gig workers on its tech-driven platform. Its data-led operations give it a utilisation rate of 85-90 per cent, claiming to be significantly higher than the 55-60 per cent utilisation recorded among smaller rivals.

 

With electric mobility demand surging in last-mile logistics, Zypp has already expanded to Hyderabad and Jaipur and plans to launch in Pune, Chennai, Kolkata, Surat, Ahmedabad, Lucknow, Kochi, Indore, and Nashik.

 

“In the top 25 cities, we want 10-15 per cent of all deliveries to be electric and powered by Zypp,” Gupta said.

 

As competitors enter the EV rental and delivery mobility space, Gupta believes Zypp’s eight years of learning, scale advantages, and tech stack give it a durable moat. “Most new players collapse within a year because they don’t have the data, the tech, or the right operating levers,” he said.

 

Zypp is now preparing for its planned IPO, with the pre-IPO fundraise set to kick off in the coming quarters.