Decoding Shorts - 5
Imagine a world where you crave chocolates and, boom, chocolates at your doorstep. Online retailers, e-commerce startups, grocery companies, etc., are increasingly moving towards hyperlocal delivery in 30 minutes. But what makes all this possible? Technology-backed, efficient supply chain!
Nowadays, businesses must refine their supply chain management to remain competitive amongst peers. If we analyze the supply chain of e-commerce, retailers, etc., last-mile delivery costs are very significant as it accounts for 53% of total shipment’s costs. But the paradox is - while the consumer wants faster deliveries, it is very time-consuming & expensive for the companies.
One such startup helping all the businesses cut down their logistics costs with their unique offerings is Zypp Electric. Co-founded by Akash Gupta and Rashi Agarwal in 2017, the startup has the vision to electrify logistics through AI/ML, IoT, and battery swapping infrastructure and provide a sustainable and affordable last-mile delivery for all types of businesses. The electric logistics vision is a $123 billion market, & E-retail will grow from 30 bn to 150 bn by 2025 in India. According to a report released by NITI Aayog and Rocky Mountain Institute, India’s logistics cost can drop by 4% of the country’s GDP and achieve 10 gigatons of CO2 savings by 2030 by implementing clean technologies, including EVs.
Zypp Electric has closely functioned with OEMs like Etrio, Piaggio, Hero Electric to procure suitable electric vehicles that can handle the weight of cargo and still be comfortable for riders. It also collaborated with financial institutions to get the vehicles on lease, creating a whole ecosystem. Zypp Electric is the first-of-a-kind startup that solely relies on EVs and 100% technology to provide cost-effective logistics in the country. The Co. has an asset-light model and ensures the maximum utilization of EVs via uberizing and electrifying the logistics. The same vehicle will be used for multiple purposes like milk & groceries deliveries in the morning, e-commerce & food deliveries, etc.
Each vehicle can carry out 25-30 deliveries a day while earning up to Rs. 30 per delivery. The annual revenue run-rate of Zypp electric is more than $1 million (6x increase post-pandemic), and the shipments are growing at 20% monthly. The startup is expected to earn a positive EBITDA while increasing its vehicle capacity in the next few years. The demand will not be the problem, but the execution will be critical.
Lately, the startup has raised around $7 million Series A round led by 9Unicorns and Anthill Ventures. It aims to expand to 25 cities with 10,000 vehicles within a year. It will require a robust charging infrastructure, more electric vehicles, & a fintech model to achieve its targets. It will be interesting to witness Zypp Electric’s journey unfolding while creating a sustainable impact in society. Author - Nikita Aggarwal