EV logistics startup Zypp Electric is looking to raise $40-50 million in a pre-IPO funding round, aiming to nearly double its valuation, according to two people with direct knowledge of the plan.
The Gurugram-based company was last valued at approximately $331 million as of March 2025. It aims to close the funding round over the next two to three months.
“The business has almost doubled since the last funding round in December 2024. Since then, it has found a business model fit for the market,” said one of the people.
It has raised $76.5 million to date from investors such as Goodyear Ventures, Venture Catalysts, Indian Angel Network Fund, We Founder Circle, 100Unicorns, and IVY Growth Associates.
The company is reportedly planning to go public in the next 1-2 years.
It did not respond to Mint’s emailed queries.
While Zypp Electric has not reported its 2025-26 earnings, its revenue stood at ₹448.6 crore in 2024-25, up from ₹111.5 crore in 2022-23, according to data from Tracxn.
The company remains loss-making, with net losses widening to ₹107.5 crore in FY25 from ₹40.5 crore in FY23.
“There are three factors behind Zypp's growth. First, quick commerce is expanding rapidly. Second, the broader economy is growing, leading to higher mobility and logistics demand. Third, rising petrol prices are accelerating the shift towards electric vehicles,” said a company spokesperson on the condition of anonymity.
Investor appetite
Founded in 2017 by Akash Gupta and Rashi Agarwal, the EV-as-a-service startup provides electric scooters and loaders on rent to delivery executives and ecommerce companies for zero-emission last-mile delivery. It competes with players such as Yulu, Alt Mobility and EVeez.
In 2025, it rolled out 500 electric scooters under its franchise-owned, company-operated model. For context, under the FOCO model, individuals, high-net-worth investors (HNIs), family offices, and institutions can invest in Zypp-approved EVs, while Zypp manages deployment, operations, and maintenance of the fleet.
The broader Indian EV ecosystem is also witnessing strong momentum, with companies including Ather Energy, BluSmart, Statiq and Euler Motors expanding their presence. Total funding in the sector rose from $40.6 million in 2017 to $1.67 billion in 2025, while investments reached $418 million in 2026, according to Tracxn.
“While IPO activity has moderated in the first half of the year, investor appetite for quality pre-IPO opportunities remains intact. Capital continues to be deployed towards businesses that demonstrate a credible path to growth, strong governance standards and clear visibility on public market readiness,” said Richa Bhansali, partner, Mindspright Legal.
Recent transactions such as CleanMax’s approximately ₹1,500 crore pre-IPO round and Milky Mist’s ₹482 crore pre-listing fundraise are examples of investor appetite for pre-IPO funding rounds despite a more selective listing environment.