In cost-cutting efforts, electric scooter rental start-up Zypp Electric has laid off 150 employees, according to a report published by Mint. The layoff drill started in February this year and it’s still going on. In addition, the Gurugram-based start-up has also introduced pay cuts related to three-day targets.
The budget trimming measures came after Zypp raised about Rs 55 crore in funds. Currently, the start-up is valued at about $322 million after it raised a total funding of about $80 million from various investors, including Anthill Ventures and Venture Catalysts. The Economic Times had earlier reported that Zypp has also started discussions to raise $25-30 million from Nuvama Wealth along with other investors.
Speaking about layoffs, Zypp spokesperson told Mint that the job cuts are about “building scalable, high-performing team” to boost the start-up’s growth and expand into new markets across the country. With this, Zypp’s workforce has “naturally” adjusted to 1,150 from 1,300 employees, the report added.
The EV sector is showing signs of strain as Ola Electric has reportedly laid off over a thousand employees across departments like fulfillment, procurement, charging infrastructure, and customer relations, amid mounting losses and growing competition.
Zypp-Indofast Partnership
In February, the electric mobility player announced its plans to deploy one lakh electric two-wheelers in collaboration with Indofast Energy, a 50-50 joint venture between Indian Oil and SUN Mobility over the next 12-18 months. It has already deployed over 10,000 EVs supported by Indofast Energy’s battery-swapping infrastructure.
The new fleet of 1 lakh electric two-wheelers (E2Ws) will be deployed across India's top eight cities, including Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Pune, Lucknow and Jaipur, enhancing efficiency for delivery partners and enterprises. With Indofast Energy's battery swapping network, riders will gain unlimited range and near-zero downtime.
In Delhi NCR and Bengaluru, Indofast Energy has an extensive network of swap stations every 1.5 kms, ensuring seamless and hassle-free battery access.
Zypp Electric, founded by Akash Gupta and Rashi Agrawal in 2017, is a last-mile delivery start-up that provides electric vehicle fleets and battery-swapping solutions for companies in logistics, and e-commerce sector.
