Zypp Electric announces ESOP buyback allocating around Rs 1.5 crore to 15 employees

Zypp Electric 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.

Electric vehicle (EV) service platform Zypp Electric became the first company in the segment to offer employee stock ownership plan (ESOP) buyback in India. In a statement on July 27, the company 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.

"This initiative is a step further toward the company's commitment to empowering its workforce and fostering a culture of shared success," it said adding that Zypp Electric has also extended ESOP benefits to Ramsevak, a long-term office boy.

ESOPs are the options provided to certain employees for buying the company's equity shares. They are exceptionally prominent with employees who have served a pre-defined time or exercise period. Similarly, the company can buy back the ESOPs anytime, provided the stockholders are willing to sell.

Akash Gupta, Co-founder & CEO, Zypp Electric said, I have always been selling ESOPs within the team, however as expected it had few takers on the concept...We aim to continue such initiatives even in future and it's just the beginning. Making millionaires is a dream I see and it is equally important for me to ensure that my team members achieve prosperity as we foray into building the EV revolution, eventually vesting our employees with financial benefits linked to the company's achievements.'

He also added that employees have realized the value of up to Rs 50 lakh individually.

Moreover, commenting on the company’s initiative, Vishwajeet Singh, AVP, Marketing & Design, Zypp Electric, said, "It’s great to have liquidity coming in as a reward for diligence and motivation for tenure ahead.”

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.