Zypp Electric Grants Rs 11 Crore ESOPs to 250+ Employees Ahead of IPO Plans

EV logistics company Zypp Electric has allocated ESOPs worth Rs 11 crore to more than 250 employees, including over 50 EV technicians, as the company prepares for its next phase of growth and planned IPO journey.

The latest Employee Stock Ownership Plan allocation covers around 22% of Zypp Electric’s total workforce across different teams and employee levels.

The company currently operates more than 30,000 electric vehicles across eight cities and plans to expand its fleet to 1 lakh EVs across 20 cities by FY28.

ESOPs Focused on Employee Ownership

For Zypp Electric, the latest ESOP grant is not only about retaining employees but also about giving them a direct share in the company's growth.

Akash Gupta, Co-founder and CEO of Zypp Electric, said the company was built by people across different teams who took ownership, solved problems on the ground and helped the business grow.

He added that as Zypp enters its next phase, the company wants more employees to participate in the value they are helping create.

The latest ESOP allocation also covers employees across different levels, including EV technicians and field sales teams, making employee ownership broader across the organisation.

Zypp Electric's Business Performance Improves

The ESOP announcement comes at a time when Zypp Electric says its operating performance has improved significantly.

The company's net revenue grew 88% year-on-year in Q1 FY27.

Its EBITDA margin improved to 10%, compared with a negative 4% in the same quarter last year. Zypp said its EBITDA margin has since reached 17% over the previous 12 months.

The company's utilisable EV fleet also grew 71% year-on-year to 30,000 vehicles during the April-June quarter.

Building EV Logistics for Multiple Industries

Zypp Electric provides technology-driven electric vehicle logistics services for businesses across e-commerce, quick commerce, food, grocery and pharmacy delivery.

The company uses IoT and AI-based technology for fleet management, delivery tracking and battery management.

With more than 30,000 EVs already operating across eight cities, Zypp is now targeting a much larger network of 1,00,000 vehicles across 20 cities by FY28.

Earlier ESOP Buyback

This is not Zypp Electric's first ESOP initiative.

In 2023, the company carried out an ESOP buyback worth around Rs 1.5 crore for 15 employees. The buyback gave these employees liquidity against a part of their vested stock options.

The latest Rs 11 crore ESOP allocation is much broader, covering more than 250 employees across the company.

As Zypp Electric continues to grow its EV fleet, improve margins and expand into more cities, the company is also using employee ownership as a way to bring more people into its long-term growth journey ahead of its planned IPO.