Zypp Electric extends ESOPs to over 250 employees

EV rental platform for last-mile logistics Zypp Electric on Wednesday said it has extended stock Employee Stock Ownership Plans (ESOPs) worth Rs 11 crore to over 250 employees this month.

The allocation extends the company's employee ownership programme across functions and employee bands, including EV technicians, as the company plans growth towards its IPO journey. The recipients represent 22 per cent of Zypp's workforce and include over 50 EV technicians, it said.

The company operates over 30,000 EV fleets across eight cities and is targeting a fleet of 1,00,000 vehicles across 20 cities by FY28.

“For us, ESOPs are fundamentally about creating ownership, not just retaining employees. As we enter our next phase of growth, we want more of our people to participate in the value they are helping create. Extending ESOPs across employee bands, including our EV technicians and field sales teams, reflects our belief that ownership should be shared across the organisation,” said Akash Gupta, Co-Founder & CEO, Zypp Electric.

The allocation comes against the backdrop of improving operating performance, Zypp said, adding that its net revenue grew 88 per cent year-on-year in the first quarter of this fiscal.

Besides, the Ebitda margin has also improved from a negative 4 per cent to 10 per cent over the same period year-on-year and has since risen to 17 per cent in the previous 12 months, it said.

At the same time, the company's utilisable fleet grew 71 per cent year-on-year to 30,000 vehicles in the April-June period, it said. ​ In 2023, Zypp undertook an ESOP buyback of approximately Rs 1.5 crore for 15 employees, providing them liquidity against a portion of their vested options.

The EV rental firm claims to be the only company to give ESOPs to gig delivery partners.

The current allocation significantly broadens the programme, extending ownership to over 250 employees across functions and roles, it said.

Zypp said its growth is driven by rising demand for technology-enabled EV solutions across last-mile delivery segments, including e-commerce, quick commerce, food, grocery, pharmacy and other categories.