EV Logistics Firm Zyngo Raises $5 Mn in Pre-Series A Funding Led by Delta Corp Holdings

Zyngo EV Mobility Pvt. Ltd, a Gurugram-based tech-enabled third-party logistics service provider, has raised $5 Million in Pre-Series A funding led by Delta Corp Holdings (“Delta Corp”) with participation from existing investors LC Nueva Investment Partners LLP. The funds will be used towards increasing fleet size, expanding to new geographies and to enhance technology.

Zyngo, founded by Prateek Rao in January 2020, offers last-mile delivery solutions through a fleet of electric vehicles. The company caters to B2B and B2C consumers, focusing on intra-city logistics to fulfill their daily logistics and transportation needs. Zyngo runs on a unique ‘asset-light model’ where they act as an intermediary between the supply and demand in the market while taking care of the operations and management of the EV fleets end to end. Zyngo aggregates the demand from various e-commerce companies, SMEs, FMCG players, cloud kitchens and other channels; on the other hand, aggregates supply directly from OEMs and DCOs(Driver cum operators).

Zyngo has made significant contributions in the EV Logistics industry, specifically in Last Mile Delivery (LMD) and Hyperlocal sectors. Zyngo has played a key role in reducing carbon footprint and curbing urban freight pollution by replacing ICE vehicles with EV technology, specifically targeting LMD trucks. Secondly, Zyngo has brought down delivery costs by up to 35%, as LMD contributes to a considerable portion of the delivery cost of a product. Lastly, Zyngo's in-house Fleet Management Software (FMS) has enabled complete visibility and transparency in its operations, addressing customer confidence and product reliability issues faced by many e-commerce companies. Lastly, as the largest organized EV 3PL (Third Party Logistics) in the pan-India market, Zyngo serves a diverse range of clients from various sectors and it aims to contribute towards improving India’s logistics sector.

Commenting on the investment, Prateek Rao, CEO and Founder, Zyngo, said, "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. Our efforts to deploy cutting-edge technology and electric vehicles for last-mile delivery have already garnered an overwhelming response from our customers. With this latest investment, we are excited to accelerate our growth and expand our reach, while staying true to our commitment to provide eco-friendly and affordable logistics solutions. We are thrilled with the further validation of our business model from our existing and new investors. We look forward to creating a greener tomorrow together."

Mudit Paliwal, the CEO & Founder of Delta Corp - “We are very excited to support Zyngo and extend our footprint in last-mile logistics in the EV space. What better place than India with its large population and growth potential. We have identified some of the key infrastructural barriers towards mass adoption and are now actively addressing each obstacle through targeted investments. These range from empowering drivers, 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.”

“Zyngo has become a trusted logistics-delivery partner to many top e-grocery and e-commerce brands, thanks to the exceptional leadership and extensive logistics expertise of the founding team. Their commitment to introducing low-carbon mobility solutions is commendable and shows their dedication to making a positive impact on the future of last-mile logistics. With their passion and strategic approach, I am confident that Zyngo is well-positioned to revolutionize the future of last-mile logistics. We are excited to support them in their next phase of growth.", he added.

Currently, Zyngo does approximately 3 lakh deliveries per month with a fleet size of 1150+ vehicles - including both 2W and 3W EVs - all of them powered by lithium-ion batteries. These vehicles (cargo e-loaders) are sourced or leased by Zyngo from top OEMs such as Hero Electric, Piaggio, Kinetic Green, Mahindra Electric, among others.

Zyngo intends to deploy over 3,000+ logistics EVs across India by the end of FY23, and at the same time, significantly expand its fleet size and B2B customer-cum-logistics-partner portfolio by 10x. By 2025, Zyngo aims to deploy at least 18,000+ zero-emission EV fleets throughout India to support the country's climate action and sustainability goals. Furthermore, Zyngo is planning to launch a first-of-its-kind hyperlocal B2C delivery mobile app. The app will ensure the efficient utilization of the fleet, with customers being able to access it through an easy-to-use, robust tech platform available on both IOS and Android devices. Zyngo also intends to expand its services to emerging segments such as food tech, e-commerce, and e-grocery deliveries.

About Zyngo

Zyngo is on a mission to provide sustainable and innovative logistics solutions that reduce dependence on fossil fuels. Zyngo has collaborated with companies to bring transition in e-commerce & e-grocery industry by switching their delivery vehicles from ICE vehicles to electric vehicles by maintaining the same level of logistics standards and productivity. Their vision is to become the largest last mile and hyperlocal company in India, with plans to deploy a fleet of over 18,000 EVs and cater to 2.5 million deliveries monthly over the next two years.

About Delta Corp Holdings

Delta Corp is a global fully integrated business involved in transportation/logistic services, asset management, and servicing the industrial supply chain. Delta Corp is headquartered in London and is a multinational business with a global footprint through a network of offices in 15 countries across Europe, the Middle East, Africa and Asia. With over 350 personnel, the company currently operates through three operating subsidiaries: (i) Bulk Logistics, (ii) Energy Logistics, and (iii) Asset Management for logistic assets, which they believe provides them with competitive advantages that allow them to maximize their market position with a business model that offers unrivaled scalability within the maritime and logistics industry.

Three Wheels United and Zyngo Join Hands to Drive EV Adoption for Last-Mile Delivery

Three Wheels United (TWU), a global fintech company for EV financing, has partnered with Zyngo, India’s largest EV logistics platform for the E-commerce industry, to accelerate the adoption of electric vehicles for last-mile delivery. Through this partnership, Three Wheels United will facilitate loans for partner drivers of Zyngo to easily switch from conventional cargo autos to EV cargo vehicles. TWU and Zyngo will deploy over 2500 EV 3-wheelers across Delhi NCR, Bengaluru, Chennai, and Hyderabad by the end of the financial year 2023.

TWU will provide the required financing solutions for drivers and Zyngo will assist drivers with vehicle maintenance, access to charging infrastructure, servicing and ensuring minimal vehicle downtime for operations.

A recent report by Stand.earth research group and Clean Mobility Collective indicates that India’s last-mile emissions are significantly higher than the global weighted average. Additionally, the last-mile delivery emissions of five major Indian cities—Delhi, Mumbai, Kolkata, Bangalore, and Chennai—are higher than those of entire nations like France and Canada. Replacing conventional cargo vehicles with EVs can be an effective solution to bring down the transportation footprint of last-mile deliveries. However, one of the key impediments for large-scale penetration of EV three-wheelers is the lack of available financing for drivers to easily switch to a less polluting vehicle. Although the long-term benefits of electric auto-rickshaws, such as lower total cost of ownership and higher profitability compared to fuel-operated ones, are attractive, their upfront cost is higher. Most drivers are unable to make the shift due to a lack of financing options that are suitable for them. This partnership between Zyngo and Three Wheels United will offer flexible financing options for drivers to switch from conventional vehicles to EVs.

Commenting on the partnership, Cedrick Tandong, CEO and Co-Founder, Three Wheels United, said, “One of the largest sources of worldwide carbon emissions is last-mile delivery. Large-scale reduction in emission requires collaboration between different stakeholders in the ecosystem. This partnership with Zyngo is a step in that direction. Zyngo and Three Wheels United have a shared vision of reducing the climate impact of the transportation sector. We are excited to partner with Zyngo to remove barriers to EV adoption and promote sustainable last-mile connectivity”

On the partnership Prateek Rao, CEO and Founder, Zyngo Ev Mobility, said “We are driving ahead the electrification of last mile delivery services across E-commerce spectrum. This initiative requires such collaborations to enable the empanelment of the EV ecosystem in the last mile delivery space. TWU’s financing solutions combined with Zyngo’s fully competent and advanced Logistics tech platform & fleet management will strive the EV ecosystem and enable faster adoption. TWU and Zyngo are on the same track of Zero Tailpipe Emission from vehicles”

Three Wheels United has over 50,000 drivers on its platform, offering them various products and services. The company has financed over 4000 auto-rickshaws resulting in the reduction of 1,72,000+ tonnes of CO2 emissions, and the generation of an extra $71M in income for the drivers.

Very recently, TWU raised $10 Million as a part of Series A Funding led by Delta Corp Holdings with participation from new and existing investors. With the new investment, Three Wheels United is in the process of scaling up two-wheeler and three-wheeler financing in India by partnering with the Government and other industry players. TWU has also started pilots in the Middle East, Africa, and other emerging markets with a goal to improve driver livelihoods and reduce air pollution globally.

About Zyngo

Zyngo, India’s largest EV Logistics Platform for the E-Commerce Industry, is uniquely placed to capture the transition to EVs in last mile E-commerce delivery. With corporate clients like Amazon, Flipkart, Bigbasket and JioMart the company is doing ~ 500,000 deliveries per month through a brand new all electric fleet of over 850+ vehicles leased from OEMs such as Hero, Piaggio and M&M across India. With extensive Logistics background of the founding team and devotion towards Low Carbon Mobility solutions, Zyngo is the future to last mile logistics. ZYNGO is focused on deploying 10,000 EV’s for hyperlocal deliveries by 2024.

About Three Wheels United (TWU)

Three Wheels United is a global fintech company that has developed a disruptive platform to finance light electric vehicles. The company leverages technology to provide the most comprehensive, affordable loans, and rent-to-own options to India’s micro entrepreneurs to help them easily switch to EV two and three-wheelers. TWU employs behaviour-informed proprietary technology to increase the accuracy of credit risk assessment and loan repayment rates, expanding access to financial products to populations that would be otherwise excluded from vehicle financing.