Zypp Electric lays off 10% of workforce amid profitability push

Zypp Electric has reduced its workforce by around 10% over the past two months as it works toward profitability ahead of a potential public listing.

In January, the company had around 1,300 employees, which has now come down to around 1,180-1,190, according to a statement from the company.

“Basically, this was not a layoff. We conducted an appraisal exercise in February, during which we looked at some rationalisation of non-performers to drive efficiency. This is part of a sustainable, profitable growth plan. As you build a business, you keep looking at its structure, and wherever some rationalisation is needed to enhance profitability and growth, you make those adjustments. That is what we continue to do,” he said.

The company is also hiring for multiple new roles, he noted.

In FY24, the company’s losses more than doubled to Rs 91 crore from Rs 40 crore in the previous fiscal, even as its operating revenue surged to Rs 293 crore from Rs 109 crore, according to financial statements sourced from the Registrar of Companies (RoC).

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Live Mint first reported this development.

Gupta said Zypp Electric’s revenue has grown by 50% in the current fiscal year compared to FY24. He added that the company aims to achieve profitability over the next two to three quarters as it eyes a potential public listing within the next 24 months.

In January, ET reported that Zypp Electric was in advanced discussions to raise an additional $25-30 million from investors, led by asset management firm Nuvama Wealth, as part of