Zypp Electric said it has allocated INR 1.5 Cr for the ESOP buyback programme for its 15 employees
The startup claimed it is the first company in the Indian EV space to come out with a ESOP buyback programme
Earlier this week, Swiggy announced a ESOP liquidity programme worth $50 million, while Flipkart also recently began a $700 Mn ESOP payout to its employees
Zypp Electric on Thursday (July 27) became the latest Indian startup to announce a ESOP buyback programme. The EV-as-a-service platform said it will buy back ESOPs of 15 employees.
The startup, which said it has allocated INR 1.5 Cr for the programme, claimed that it is the first company in the country’s electric vehicle (EV) space to come out with a ESOP buyback programme.
In a statement, the startup said that its initiative has resulted in many more employees coming forward to avail ESOP opportunities.
“We believe every team member plays a crucial role in our success, and this ESOP buyback is a step towards ensuring their well-deserved share in the company’s growth. Employees have realised the value of up to INR 50 Lakh individually,” Zypp Electric CEO and cofounder Akash Gupta said.
Zypp Electric, founded in 2017 by Gupta and Rashi Agarwal, provides electric scooters to local merchants and ecommerce companies for last-mile deliveries. The startup counts the likes of Swiggy, Zepto, Flipkart, Rapido and Amazon among its clients.
Zypp Electric claims to currently have a fleet of over 16,000 electric scooters. It has around 500 employees.
Earlier this year, the startup raised $25 Mn in its Series B funding round, which was a mix of equity and debt. The round was led by Taiwanese battery swapping major Gogoro. Overall, it has raised a total funding of $37.5 Mn till date.
Zypp Electric, which counts Venture Catalysts, LetsVenture and 9Unicorns among its backers, plans to expand its fleet size to 2 lakh EV scooters by 2025.
With increasing awareness about climate change and focus of companies on reducing their carbon emissions, the demand for EVs is expected to grow rapidly in the country in the coming years. A number of Indian startups, including Zypp Electric, are looking to cash in on this opportunity.
The latest development comes at a time when a number of startups are going for ESOP buybacks to reward their employees. Earlier this week, foodtech giant Swiggy announced a ESOP liquidity programme worth $50 million, while Flipkart began a $700 Mn ESOP payout to its employees following separation of PhonePe from the company.
With the growth in the country’s startup ecosystem, ESOPs have become a popular tool for startups to attract and retain talent. An increasing number of startups are also buying back ESOPs. As per Inc42 data, Indian startup employees made over $196 Mn through buybacks in 2022.
