Gurugram-based electric vehicle (EV) fleet management firm Zypp Electric has reduced its workforce by around 10% over the past two months as it works toward profitability ahead of a potential public listing.
In January, the company had about 1,300 employees, which has now come down to around 1,190, founder Akash Gupta told ET.
“Basically, this was not a layoff. We conducted an appraisal exercise in February, during which we looked at some rationalisation of non-performers to drive efficiency. This is part of a sustainable, profitable growth plan. As you build a business, you keep looking at its structure, and wherever some rationalisation is needed to enhance profitability and growth, you make those adjustments. That is what we continue to do,” he said.
The company is also hiring for multiple new roles, he noted.
In FY24, the company’s losses more than doubled to ₹ 91 crore from ₹ 40 crore in the previous fiscal, even as its operating revenue surged to ₹293 crore from ₹109 crore, according to financial statements sourced from the Registrar of Companies (RoC).
Live Mint first reported this development.
Gupta said Zypp Electric’s revenue has grown by 50% in the current fiscal year compared to FY24. He added that the company aims to achieve profitability over the next two to three quarters as it eyes a potential public listing within the next 24 months.
In January, ET reported that Zypp Electric was in advanced discussions to raise an additional $25-30 million from investors, led by asset management firm Nuvama Wealth, as part of an ongoing funding round.
Silicon Valley investor, Tribe Capital, is also participating in the round, a development ET first reported in April last year. The following month, Zypp Electric raised $15 million as part of the same round, led by Japanese energy firm Eneos, valuing the company at approximately $280-290 million.
Founded in 2017 by Akash Gupta, Rashi Agarwal, and Tushar Mehta, Zypp Electric has been a key beneficiary of India’s fast-growing quick commerce sector. It works with companies such as Swiggy, Zomato, and Zepto, providing delivery riders and electric two-wheelers.
Further, Gupta said Zypp Electric currently operates a fleet of about 20,000 vehicles and plans to add 4,000-5,000 more in the next two to three months while expanding into new cities in the next quarter. Currently, it operates in Delhi NCR, Mumbai, and Bengaluru.
Earlier this month, ET reported that Bengaluru-based electric two-wheeler manufacturer Ola Electric laid off around 1,200 employees and contract workers over the past two months amid a declining market share and widening financial losses.
