Zypp Electric Layoffs 10% Workforce Over ‘Performance’ Issues

IPO-bound electric mobility startup zypp Electric has laid off nearly 10% of its workforce in the past three months due to "performance" issues.

Co-founder and CEO Akash Gupta said that the layoffs were part of a "rationalization" process aimed at improving efficiency, growth, and profitability.

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“As a company, we have not officially conducted any layoffs but, in fact, we did appraisals in the month of February. During appraisals, we have to look at some kind of rationalisation to keep driving efficiencies, to drive sustainable growth, and profitable growth… In January, we were at about 1,300 employees and now we are close to 1,180 or 1,190 odd people,” Gupta said. 

The electric vehicle-as-a-service platform plans to list on the stock market by the end of 2026 and is working to reduce its cash burn and losses, as public investors prefer profitable companies.

Co-founder and Chief Business Officer (CBO) Rashi Agarwal said that Zypp aims to reach Rs 1,000 Cr in revenue and achieve EBITDA profitability by the end of fiscal year 2024-25 (FY25).

In FY24, Zypp's net loss increased 125% to Rs 91.1 Cr, up from Rs 40 Cr in the previous year, while its operating revenue rose 168% to Rs 292.7 Cr from Rs 109.1 Cr in FY23.

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To hit its revenue target, Zypp has been actively raising funds. In 2024, it raised $14 million in its ongoing Series C round led by ENEOS Corporation, bringing its total funding to $55.5 million. 

Additionally, Zypp is reportedly planning to raise another $35 million in funding.

About Zypp Electric

Founded in 2017 by Akash Gupta and Rashi Agarwal, Zypp Electric offers electric scooters to local businesses and e-commerce companies for last-mile deliveries. Its clients include Swiggy, Zepto, flipkart, rapido, Blinkit, Zomato, Uber and Amazon.

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