Zypp lays off 11% of workforce despite revenue growth

Zypp Electric, an electric scooter rental startup, has laid off around 150 employees, which is about 11% of its workforce. This decision comes shortly after the company raised funds to support its growth. Despite increasing interest in electric scooters, the sector faces ongoing challenges. Zypp's layoffs aim to improve efficiency and achieve better performance targets. The company, based in Gurugram, has reduced its staff from 1,300 to 1,150 employees. A spokesperson stated that these changes are part of regular exercises to build a stronger team and are not solely about job cuts. Founded in 2017, Zypp provides electric vehicle fleets and battery-swapping solutions for various industries. The startup has raised around $80 million from investors. Recently, it secured an additional $6.5 million in funding and is looking to raise another $25-30 million. Along with layoffs, Zypp has introduced a new policy that affects team leads' pay based on their performance. If they fail to meet set targets, they could lose a day’s pay. The company emphasizes that all employees are compensated fairly for their contributions. Industry experts have highlighted the difficulties faced by electric vehicle companies in India, including high battery costs and lack of charging infrastructure. Despite these challenges, investor confidence in the sector remains strong, with a focus on companies that drive innovation and efficiency. Zypp aims to achieve profitability soon, targeting ebitda positivity within two quarters. The company has plans to scale up its operations and expand its fleet from 20,000 to 200,000 electric scooters over the next few years. In the current financial year, Zypp's revenue has grown significantly, reaching 460 crore, but its losses have also increased. The company is banking on a combination of technology investments and market expansion to achieve sustained growth in the coming years.