Zypp Electric, an electric vehicle (EV) as-a-service platform, recently announced an Employee Stock Ownership Plan (ESOP) buyback programme on Thursday, July 27. The startup plans to buy back ESOPs from 15 of its employees, making it the first company in India’s EV space to offer such a programme.
Empowering Employees with ESOP Opportunities
The startup’s initiative has sparked significant interest among its employees. As a result, more team members have come forward to avail ESOP opportunities. Zypp Electric’s CEO and co-founder, Akash Gupta, voiced the company’s belief in the importance of each team member’s contribution to its success. The ESOP buyback aims to ensure that employees participate in the company’s growth, with individual values reaching up to INR 50 lakhs.
Zypp Electric- EV Services and Clientele
Founded in 2017 by Akash Gupta and Rashi Agarwal, Zypp Electric operates by providing electric scooters to local merchants and ecommerce companies for last-mile deliveries. The startup boasts an impressive clientele, including well-known names such as Swiggy, Zepto, Flipkart, Rapido, and Amazon. Currently, the company’s fleet consists of over 16,000 electric scooters, and it employs around 500 people.
Zypp Electric- Funding and Expansion Plans
Earlier this year, Zypp Electric secured $25 million in a Series B funding round. The funding round comprised both equity and debt investments. Taiwanese battery swapping major Gogoro led the funding. This brought Zypp Electric’s total funding raised to $37.5 million to date. Venture Catalysts, LetsVenture, and 9Unicorns are among the investors backing Zypp Electric. With their support, Zypp Electric has ambitious plans for expansion. By 2025, the startup aims to grow its fleet size to 2 lakh EV scooters.
ESOP Buybacks in India’s Startup Ecosystem
The announcement of Zypp Electric’s ESOP buyback programme aligns with a growing trend in India’s startup ecosystem. Several startups, including foodtech giant Swiggy, have recently implemented ESOP liquidity programmes to reward and retain their employees. Flipkart also initiated a significant $700 million ESOP payout to employees after PhonePe’s separation from the company. As the startup landscape expands and awareness about climate change increases, ESOPs have become a popular tool for attracting and motivating talent in the country’s thriving startup scene. In 2022 alone, Indian startup employees benefited from over $196 million through buybacks, underlining the importance of such schemes for both companies and their employees.
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