According to reports, Zypp Electric has raised $25 million in a funding round led by Taiwanese EV maker and battery-swapping company Gogoro.

The round comprises $20 million in equity funding and $5 million in debt, which came from global impact fund IIX and a large national bank in India.

Goodyear Ventures, 9Unicorns, WFC, Venture Catalysts, LetsVenture, IAN, Ivygrowth, and Grip also participated in the funding round for the electric vehicle fleet operator.

“The funding from Gogoro is strategic in nature, which means the company will not only be using Gogoro's battery-swapping technology and vehicles on its fleet but would also look to expand Zypp's operations in regions like Southeast Asia, the Middle East and Europe,” says cofounder and CEO Akash Gupta.

“Gogoro also realizes that India is a large B2B opportunity as of now. And what we plan to do is to definitely help set up their swap stations in India because that goes hand in hand with our delivery business. If my driver wants 200-300 kilometres, only a swapping model can ensure there is no downtime. So, that is why we also realize that we need a swapping partner to scale,” says Gupta.

The rising EV two-wheeler sales in India are primarily being driven by demand from food delivery and e-commerce firms.

Gogoro has also partnered with India’s biggest two-wheeler maker Hero MotoCorp to develop electric two-wheelers, but the collaboration – which also includes the establishment of a battery swapping network - does not restrict it from forging other partnerships or introducing its own products in India.

“We plan to go into newer geographies where we can solve the same problem because every geography’s stuck with similar problems like uncertain petrol prices, there's driver unrest, there's instability. We provide some sanity and kind of organized stability to the entire gig delivery market with our EV fleet management tech,” says Gupta.