Zyp Technologies, a company operating in the energy and electric motorcycle assembly sector, has successfully raised $1.2 million in a seed funding round. The round was led by Indus Valley Capital, a prominent venture capital firm.
Zyp Technologies, founded in September 2022, focuses on producing electric motorcycles and providing Battery-as-a-Service (BaaS) solutions in Pakistan. The company aims to address challenges related to the high upfront costs of electric vehicles, range anxiety, and lengthy charging times.
The startup’s assembly plant, located in Lahore, has the capacity to manufacture up to 8,000 electric motorcycles annually. Additionally, their energy division, based in Islamabad, offers battery swap services.
Zyp Technologies distinguishes itself through an array of solutions, including purpose-built electric motorcycles, innovative battery swap stations, proprietary battery architecture, cloud-based software, and mobile applications. These innovations are designed to facilitate cost-effective and eco-friendly transportation alternatives.
As Pakistan grapples with climate change and soaring fuel prices, Zyp’s offerings are positioned to help motorcycle fleet operators reduce fuel costs by up to 70% while eliminating air pollution emissions, thereby fostering environmentally sustainable and profitable operations.
Aatif Awan, the founding partner at Indus Valley Capital, emphasized the significance of Zyp’s contributions in addressing Pakistan’s trade imbalance and high inflation.
Hassan Khan, co-founder and CEO of Zyp Technologies, highlighted the company’s grassroots origins. Starting with an initial capital injection of $66,000, the seed funding will primarily support capital expenditures associated with the assembly plant and the provision of battery solutions.
Zyp’s Battery-as-a-Service (BaaS) subscriptions offer riders flexible pricing tiers based on their usage. Khan likened the experience of replacing a depleted battery to a conventional stop at a petrol station.
The company offers a range of motorcycle variants priced from Rs150,000 to Rs450,000, with battery subscriptions available at different price points ranging from Rs4,000 to Rs24,000.
Khan underlined the company’s commitment to indigenous development. While some components like cells for the batteries are imported, Zyp’s motorbikes, frames, body parts, and software solutions are locally produced. These solutions also include advanced tracking and monitoring features for motorcycle fleets.
Zyp Technologies believes that Pakistan deserves better, particularly concerning the outdated motorcycle designs still prevalent on the roads. The support from Indus Valley Capital has played a pivotal role in enabling Zyp to create localized solutions tailored to Pakistan’s unique needs.
In addition, the company’s indigenously produced charging stations are capable of recharging compatible motorcycles within 60 seconds. Zyp plans to install its first energy station on the premises of a major B2B customer.
This funding announcement comes at a time when Pakistan’s startup ecosystem has experienced a decline in funding due to a persistent economic crisis and high interest rates redirecting capital towards lower-risk assets. During the second quarter of 2023, Pakistani startups secured the lowest level of funding in three years, with just $5.2 million in investments, marking a 95% year-on-year decline and a 77.5% decrease on a quarterly basis.