Zypp Electric, an electric vehicle (EV)-as-a-service platform, has raised $15 million in its Series C funding round, allowing the company to expand its fleet from 21,000 to 200,000 e-scooters across 15 Indian cities by 2026.

The funding round, led by Japanese major ENEOS, comprised $15 million in equity as part of its ongoing $50 million round, which includes $40 million in equity and $10 million in debt.

The round saw participation from existing investors such as 9unicorns, IAN fund, Venture Catalysts, and WFC.

“This investment propels our mission to revolutionize last-mile delivery with sustainable EV solutions. We are eager to expand our fleet and enhance our tech platform, driving significant growth across India. These funds will be utilized to drive the company towards the full path of growth along with EBITDA profitability,” said Akash Gupta, co-founder and CEO of Zypp.

Last year, Gupta mentioned that GST reductions levied on EVs were essential for EV-led services such as battery swapping and last-mile delivery.

The company, which logged a revenue of ₹3.25 billion (~$39.08 million) in FY23-24, recently launched operations in Mumbai and Hyderabad. According to a press release, Zypp has entered the three-wheeler cargo business and is poised to surpass 1,000 electric L5 loaders in its fleet.

“In India, the last-mile delivery market is skyrocketing, especially within urban areas. Zypp is operating its business as a pioneer in the EV motorcycle delivery market with competitiveness, and this is the reason why we made the decision to invest,” said a representative from ENEOS.

In the first quarter of 2024, the sale of EVs in India touched a record high with 486,669 units, registering a 40% year-over-year increase from the corresponding quarter in 2023.