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Zipgo to close Rs 300 crore funding in next one week from Essel Infraprojects

Zipgo to close Rs 300 crore funding in next one week from Essel Infraprojects

Zipgo to close Rs 300 crore funding in next one week from Essel Infraprojects
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By Rukmini Rao  Aug 7, 2018 5:22:42 PM IST (Published)

Bus aggregator, Zipgo Technologies Private Ltd, is in the last leg of raising Rs 300 crore from Essel’s Group company, Essel Infraprojects Ltd.

Bus aggregator, Zipgo Technologies Private Ltd, is in the last leg of raising Rs 300 crore from Essel’s Group company, Essel Infraprojects Ltd.

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Two people in the direct knowledge of the deal confirmed that founders have already signed on the term sheets and the existing investors are in the process of signing papers. The deal is expected to be closed in the next one week.
With the fresh round of funds, the company will look to induct electric buses and e-rickshaws into its fleet and slowly move towards EV heavy fleet or EV only fleet.
The company has raised about $8 million, with the latest being Fund of Funds for Start-ups.
Founded by Jitendra Sharma, Pritesh Gupta, Gaurav Aggarwal and Neeraj Paliwal in 2015, Zipgo is a member’s only private on-demand bus service provider that provide air-conditioned buses for daily commute.
The company currently operates in six metros and also piloted inter- city commute last year.
Zipgo’s latest fund raise comes at a time, when the company has been struggling with regulatory challenges for operations in certain cities and increased cost of fuel.
Essel Infraprojects Ltd, which is likely to be a majority shareholder after the funding, has already announced investment of over Rs 3,000 crore into electric mobility space during Uttar Pradesh Investor Summit earlier this year.
Also, recently under the Essel Green Mobility Ltd initiative, the company launched charging stations and battery swapping technology initiate in Lucknow, Uttar Pradesh.
The company is also planning to launch 250 charging station and 1,000 battery swapping stations in 20 Uttar Pradesh cities.
The story was first reported by news site Entrackr.
Zipgo’s competitor in the space, Shuttl, recently raised $11 million led by Amazon India, Alexa fund and Denstu ventures.
The company will be using funds to expand into two new cities along with strengthening its service in existing cities, Delhi NCR and Jaipur. Shuttl is also running pilots in Pune and Kolkata.
Zipgo refused to comment on the story, while a response from Essel Infraprojects Ltd is awaited.
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