Zapp EV receives $10 million funding, set to rollout i300 urban scooter in Europe, Asia

EV funding: British electric motorcycle maker Zapp Electric Vehicles Ltd has announced that it has entered into a standby equity purchase agreement of up to $10 million with an affiliate of Yorkville Advisors Global. 

Zapp EV will utilise the proceeds from the transaction primarily to start the production and commercial rollout of the i300, the brand’s high-performance electric urban motorcycle, the company informed.

The company expects to make initial deliveries of the i300 in Europe in the months ahead, followed by commercial launch of the i300 in Asian markets in late 2024, it said. 

i300 deliveries 

Swin Chatsuwan, Founder and CEO of Zapp EV, said, “Our design and engineering teams have delivered an exceptional product. With this vote of confidence from a renowned investor, we have the financial resources for the expected rollout of i300s this year.”

"We aim to achieve a positive gross margin from the start of an anticipated ramp-up in customer deliveries. Zapp needs very little capital by industry standards to achieve our goals due to our balance sheet light business model leveraging contract manufacturing," he said. 

"We look forward to the first i300 deliveries in Europe, receipt of European Community Whole Vehicle Type Approval now that all requisite vehicle tests have been successfully completed, and capitalising on this progress to expedite our commercial rollout across key Asian markets.”

Electric two-wheeler sales 

Zapp EV expects sales of e-wo-wheelers to grow significantly in most parts of the world in the years ahead, especially in emerging markets. 

Among other key competitive advantages and product differentiation, the company states that “Zapp’s i300 rollout will not be impeded by investments in dedicated charging infrastructure since its two lightweight portable batteries can be taken indoors and charged at any wall socket.

After starting production, its (Zapp EV’s) asset-light business model, employing contract manufacturing in tandem with receivables financing arrangements through the Export Import Bank of Thailand, will enable the rapid scaling up of its business.”