Zypp Electric significantly reduced its FY26 losses as it prepares for a major IPO, expanding its fleet and cutting costs amid growing revenue from last-mile delivery and electric scooter rentals.
Zypp Electric has sharply reduced its annual losses as the EV logistics start-up moves closer to a public market debut, a sign that investors may be warming to growth stories with less cash burn.
According to filings with India’s ministry of corporate affairs, Bycyshare Technologies, the parent of Zypp Electric, cut its consolidated net loss to ₹59.7 crore in FY26 from ₹107.5 crore a year earlier, even as operating revenue rose 5.2% to ₹461 crore. Including other income, total revenue reached ₹475.6 crore, and the company also recorded an exceptional expense of ₹45 lakh linked to changes in labour law.
The business remains led by last-mile delivery work, which brought in ₹322.4 crore in FY26, broadly unchanged from the previous year. Zypp also earned ₹137.7 crore from electric two-wheeler rentals, up 24% year on year, as delivery partners continued to use its vehicles for orders from platforms including Zomato, Blinkit and Zepto.
Costs fell too. Total expenses declined 3.8% to ₹534.8 crore, helped by lower rider-related spending and a drop in employee benefits. Rider expenses remained the biggest line item at ₹334.6 crore, while battery-swapping costs climbed 40.3% to ₹24 crore as the company expanded its fleet and charging infrastructure.
The improved numbers come as Zypp prepares for a proposed $200 million IPO. Livemint reported that the company has appointed Axis Capital, SBI Capital Markets and DAM Capital as bankers for the offering, which it expects to pursue over the next 22 months. The same publication said Zypp is also seeking a pre-IPO funding round of $40 million to $50 million that could lift its valuation, which stood at about $331 million in March 2025.
Founded in 2017 by Akash Gupta and Rashi Agarwal, with Tushar Mehta later joining, Zypp has become one of the better-known names in India’s electric delivery space. Moneycontrol said the company operates a fleet of more than 21,000 electric scooters, while its investor-relations material says it is aiming for monthly profit after tax by September 2026 through fleet expansion, AI-led cost control and franchise growth.
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