EV logistics startup Zyngo said it has raised $5 million in a round led by Delta Corp Holding, with participation by existing investor LC Nueva Investment Partners LLP, according to ET report.
The startup said that the funds will be used to increase its fleet size, expand to new regions, and improve technology.
Zyngo currently makes approximately 3 lakh deliveries per month with its fleet of 1,150 vehicles, which has both two- and three-wheeler EVs. These vehicles (cargo e-loaders) are sourced or leased from EV makers such as Hero Electric, Piaggio, Kinetic Green and Mahindra Electric, among others.
Zyngo intends to deploy over 3,000 EVs across India by the end of FY23. By 2025, the company aims to deploy at least 18,000 EVs throughout India. Zyngo is also planning to launch a hyperlocal B2C delivery mobile app. The app will ensure the efficient utilisation of the fleet, it said.
Started in 2020, Zyngo has B2B and B2C clients with last-mile needs. It claims to run on an asset-lite model by aggregating demand from various e-commerce companies, SMEs, FMCG players, cloud kitchens and securing supply of EVs directly from OEMs and drivers-cum-operators.
Zyngo’s funding comes amid increasing pressure on ecommerce and online food delivery marketplaces to reduce costs amid a tough funding environment. Multiple companies have raised funding in the space lately, including Zypp Electric, which raised $25 million in a round led by Taiwan-based Gogoro, and Yulu, which raised $82 million from Canada’s Magma.
“We founded Zyngo with a vision to champion the cause of clean mobility solutions in the logistics sector, which has traditionally been dominated by large polluting trucks and vans,” said Prateek Rao, founder and CEO of Zyngo, in a statement announcing the fundraise. “Our efforts to deploy cutting-edge technology and electric vehicles for last-mile delivery have already garnered an overwhelming response from our customers.”
“We have identified some of the key infrastructural barriers towards mass adoption and are now actively addressing each obstacle through targeted investments,” Mudit Paliwal, CEO and founder of Delta Corp, said in the same statement. “…from empowering drivers and financing vehicles to creating EV infrastructure hubs, our goal is to create a comprehensive EV ecosystem that will accelerate adoption of EVs throughout India, particularly in logistics.”
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