Zypp Electric has granted employee stock ownership plans (ESOPs) worth Rs 11 crore to more than 250 employees, expanding its employee- ownership programme as the EV logistics company prepares for its next phase of growth and potential IPO journey.
The latest ESOP allocation covers 22 per cent of the company’s workforce and extends ownership across employee groups, including more than 50 EV technicians and field teams. Zypp operates a fleet of more than 30,000 electric vehicles across eight cities and is targeting 1 lakh vehicles across 20 cities by FY28.
The company said the latest allocation is intended to broaden employee participation in the value created through its growth, rather than being limited to retention-focused programmes.
Zypp’s ESOP programme has previously included a buyback of around Rs 1.5 crore in 2023, when 15 employees received liquidity against a portion of their vested options. The company said the latest allocation significantly expands the programme across functions and employee levels.
The ESOP rollout comes as Zypp reports improvement in its operating performance. Its net revenue increased 88 per cent year-on-year in the first quarter of the current fiscal, while its EBITDA margin improved from negative 4 to 10 per cent over the same period. The company said the margin had subsequently increased to 17 per cent over the preceding 12 months.
Its utilisable fleet also grew 71 per cent year-on-year to 30,000 vehicles during the April-June quarter.
Zypp is seeing increasing demand for technology-enabled electric vehicle solutions across last-mile delivery segments, including e-commerce, quick commerce, food, grocery and pharmacy.
The company has also previously said it is the only company in its segment to extend ESOPs to gig delivery partners. The latest grant widens the ownership programme to employees across operational and corporate functions as Zypp scales its fleet and geographic presence.
