The transportation and logistics sector is one of the largest contributors to greenhouse gas emissions in India. As industries and businesses look for sustainable alternatives, ZEVO – Zero Emission Vehicle Operation – is leading the way in revolutionizing supply chain logistics with electric vehicles. As India’s first Electric Vehicle Supply Chain as a Service platform, ZEVO is redefining logistics by offering end-to-end electric supply chain solutions, including first-mile procurement, last-mile delivery, refrigerated transportation, and agricultural supply chain electrification.
ZEVO’s approach is unique—it doesn’t just provide electric transportation but integrates cutting-edge technology, real-time visibility, and data-driven insights to create a seamless and efficient logistics ecosystem. With an emphasis on cold chain logistics, ZEVO ensures that industries like FMCG, pharmaceuticals, and agriculture have access to sustainable and reliable supply chain solutions. Their Farm-to-Fork and Mandi-to-Retail model electrifies the entire agricultural supply chain, making them the first and only fully integrated electric agriculture supply chain platform in India.
ZEVO’s impressive 12X ARR growth over the past year highlights the rising demand for sustainable EV logistics and the company’s strategic expansion into 20+ cities. With 80% of revenue driven by long-term contracts, ZEVO has built a financially stable foundation that enables continuous investment in fleet expansion and service enhancement. The last-mile and mid-mile logistics sectors have been key growth drivers, and the company is now focusing on temperature-controlled deliveries, rapid commerce fulfillment centers, and new strategic partnerships to further accelerate its momentum. With an ambitious target of Rs.300 crore ARR for the next fiscal year, ZEVO is poised to lead India’s shift toward green, technology-driven supply chain solutions. As businesses continue embracing sustainable logistics, ZEVO’s commitment to innovation, expansion, and customer-centric solutions positions it as a frontrunner in India’s evolving EV logistics landscape.
In a recent interview, Rashmi interacted with Aditya Singh Ratnu, Co-Founder and chief executive officer, ZEVO, in which he discussed about ARR Growth, Long-term Contracts, Last-Mile Deliveries, Mid-Mile Logistics, Sustainable Logistics, etc.
1.What factors have driven ZEVO’s ARR growth over the past year?
Over the past year, our ARR growth has been driven by strong demand from our existing customers and a steady flow of new clients choosing ZEVO. Expanding into 20+ cities has also played a big role, helping us reach new markets and serve more businesses. As companies focus more on sustainable logistics, they see the value in our EV solutions. This combination of customer trust and expansion has helped us grow steadily and strengthen our position in the industry.
2.Can you share the percentage increase in ARR as compared to last year?
Last year, our revenue was ₹5 crore, and this year, we have grown an ARR of ₹60 crore. This marks a remarkable 12X increase compared to the previous year. This growth reflects the strong demand for ZEVO’s EV logistics solutions, our expanding customer base, and our strategic expansion into new cities. It’s a testament to the trust our clients place in us and the increasing shift towards sustainable transportation. We’re excited about this momentum and remain committed to driving further growth in the coming years.
3.How does recurring revenue from long term contracts contribute to the company’s financial stability?
Recurring revenue from long-term contracts plays a crucial role, as around 80% of our business comes from these contracts, providing a steady and predictable revenue stream. This stability allows us to plan ahead, invest in fleet expansion, and improve our services without worrying about short-term market fluctuations. Long-term partnerships also strengthen customer relationships, ensuring consistent demand for our EV logistics solutions. With this strong foundation, we can focus on scaling operations, entering new markets, and driving sustainable growth while maintaining financial resilience.
4.Are there specific products or services within ZEVO’s portfolio that significantly contributed to ARR growth?
Last-mile deliveries have been the biggest driver of our ARR growth this year, as businesses continue to prioritize efficient and sustainable urban logistics. However, we’ve also seen a significant surge in demand from the mid-mile sector, which is emerging as a key growth area for us. Companies are increasingly looking for reliable, eco-friendly solutions for transporting goods between warehouses, distribution centers, and retail hubs. This growing interest in mid-mile logistics presents a huge opportunity for ZEVO, and we are actively scaling our operations to meet the rising demand across both segments.
5.What is ZEVO’s projected ARR for the next fiscal year?
For the next fiscal year (FY 2025-26), we are targeting an ARR of Rs.300 crore or more. With the strong momentum we’ve built, expanding customer demand, and our growing presence in the mid-mile and last-mile logistics sectors, we are confident in achieving this goal. Our focus will be on scaling operations, expanding into new markets, and strengthening long-term partnerships. As businesses increasingly adopt sustainable logistics solutions, ZEVO is well-positioned to drive significant growth and further solidify its leadership in the EV logistics space.
6.Are there plans to expand revenue sources through new services or partnerships?
Yes, we have exciting plans to expand our revenue streams through new services and strategic partnerships. One key initiative is the introduction of temperature-controlled deliveries across multiple cities, catering to industries like pharmaceuticals and perishable goods. Additionally, we are partnering with 20+ new customers, further strengthening our market presence. Another major focus is the expansion of rapid commerce and fulfillment centers across 20 cities in India, enhancing our ability to provide faster and more efficient deliveries. These initiatives will play a significant role in driving growth and solidifying ZEVO’s position as a leader in sustainable logistics.