Zypp Electric allocates Rs 1.5 crore for buyback, first in EV industry

Zypp Electric said the allocation has been made to 15 employees who have been in the company for over a year

Electric vehicle (EV) service platform Zypp Electric became the first company in the segment to offer employee stock ownership plan (Esop) buyback. In a statement on Thursday, it said that 15 employees, who have been a part of the company for over a year, have been allocated Rs 1.5 crore under the plan.

"I have always been selling ESOPs within the team, however as expected it had few takers on the concept. This realisation of the monetary value of ESOPs among employees was to make them feel the power of this amazing wealth-creation tool. We aim to continue such initiatives even in future and it's just the beginning," said Akash Gupta, co-founder and chief executive officer at Zypp Electric.

"It's great to have liquidity coming in as a reward for diligence and motivation for tenure ahead. I am sure this will motivate other team members and become an example of how ESOPs can be an opportunity for wealth creation along with value creation," said Vishwajeet Singh, AVP of Marketing & Design at Zypp Electric.

Founded in 2017, Zypp Electric makes last-mile delivery for local merchants as well as e-commerce companies. Currently, it has over 16,000 EVs on the road.

Earlier in May, the company announced that it will add 200,000 EVs to its fleet in the next three years with an investment of $300 million.

The company, which is planning to enter new cities like Mumbai, Pune, and Hyderabad is targeting a revenue of Rs 500 crore this year, up from Rs 125 crore last year.

"For us, the expansion is that today, we have 13,500 (vehicles in the fleet). How fast we can get to 200,000 is what we have to go for. We are doing those partnerships, we are building that tech, we are building that team of research and development and to do this in multiple markets," Gupta then told news agency PTI.