Zypp Electric cuts jobs weeks after fundraising, follows Ola Electric’s lead
Beyond job cuts, the company has also implemented a policy that penalises team leads financially if they fail to meet set targets within a three-day period.
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Electric scooter rental startup Zypp Electric has let go of at least 150 employees and introduced pay cuts tied to performance targets in an effort to control costs, according to a report by Mint.
The layoffs come shortly after the company raised around ₹55 crore as part of an ongoing funding round. Despite the growing adoption of electric scooters, India's electric vehicle sector faces significant challenges. The company has been reducing its workforce since late February to cut expenses, and the process is still ongoing.
Gurugram-based Zypp Electric confirmed the job cuts, stating that it was part of a standard efficiency review.
Reportedly, this move comes in view of creating a high-performing team to drive growth and expansion into new markets. As part of regular performance-based evaluation, Zypp's workforce has adjusted from 1,300 to 1,150 employees.
Beyond job cuts, the company has also implemented a policy that penalises team leads financially if they fail to meet set targets within a three-day period.
Zypp Electric, founded in 2017 by Akash Gupta and Rashi Agrawal, provides last-mile delivery solutions using electric vehicle fleets and battery-swapping technology for e-commerce, grocery, and logistics companies. The company has raised approximately $80 million from investors, including Anthill Ventures and Venture Catalysts, and is currently valued at around $322 million.
Despite this funding, Zypp’s cost-cutting measures reflect broader struggles in the Indian EV sector. Last year, global wealth management firm Bernstein highlighted the challenges faced by EV companies in scaling operations and achieving profitability.
Industry experts suggest that high battery costs and limited charging infrastructure have made scaling EV startups difficult.
Earlier this month, Ola Electric Mobility also announced it would lay off around 1,000 employees in its push towards profitability.
Currently, Zypp Electric operates a fleet of about 20,000 electric scooters.
