India's Delivery Fleet To Be 30–40% Electric In Five Years, Says Zypp Electric CEO

The market will need 70–80 lakh delivery executives by 2027, up from 20 lakh now.

<div class="paragraphs"><p>Zypp Electric Co-Founder and CEO Akash Gupta. (Source: Zypp Electric)</p></div>
Zypp Electric Co-Founder and CEO Akash Gupta. (Source: Zypp Electric)

The rapidly growing delivery fleets in India will see at least 30-40% penetration of electric vehicles by 2027, according to Akash Gupta, co-founder of shared mobility and delivery firm Zypp Electric.

“Penetration of electric vehicles in India’s delivery fleets is currently at 1-2%, which should hit at least the 30-40% mark in the next four to five years as the e-commerce market grows,” Gupta, also the chief executive officer of EV-as-a-service platform, told BQ Prime. “We’re looking to capture nearly half of that market.”

India’s e-commerce market is poised to reach $50 billion in 2022, growing 25% year-on-year, according to a joint study by the consulting firm Bain & Company and Flipkart. This market is expected to scale to $150–$170 billion by 2027.

According to Gupta, this will mean that the market will need 70–80 lakh delivery executives by that time, up from 20 lakh now.

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And that’s where platforms like Zypp Electric will come in.

Zypp Electric provides electric vehicles for last-mile delivery to companies looking for eco-friendly delivery solutions. It counts Amazon, Swiggy, Zomato, Zepto, and Blinkit among its long list of clients, which includes several names from India’s e-commerce space.

The Gurugram-based startup leases these vehicles from electric scooter manufacturers and gives them to delivery agents, who deliver products for the company’s clients.

It has a fleet of 8,000 EVs currently, and it adds close to 800 to 1,000 scooters every month to the overall tally. The startup plans to deploy a total of 1.5 lakh vehicles in the next 24 to 30 months, covering the top 18 cities in the country.

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For such a huge scale, the company plans to dilute a 17–18% stake in its Series B round to raise $25–30 million.

Gupta says the next round of funding will be in about 18 months from Series B, and those funds will be used to increase the fleet to 5 lakh vehicles.

The company has started a pilot project in strategic partnership with Taiwan’s battery swapping company, Gogoro Inc., to reduce the downtime of its vehicles. Currently, 70% of the vehicles in its fleet depend on charging stations for recharging the scooter batteries, while 30% rely on battery swapping.

Battery swapping will lead to virtually no downtime as the drained battery pack will be replaced with a fully charged one in a few seconds, compared to the 2-3 hours it takes to charge these batteries.