5% workforce laid off: Sequoia, Accel, and Qualcomm-backed Bounce

In a bid to cut costs, 40–50 employees were laid off across departments, including customer support, finance, and other departments.

0
1026

Bounce, an electric 2-wheeler manufacturer and scooter rental company, has reportedly laid off around 5 per cent of its workforce, or about 40 to 50 employees, across various departments, including customer support and finance.

The decision is said to be in an effort to cut costs and focus on the Original Equipment Manufacturer (OEM) business.

According to sources, the company has around 500–700 employees in India. The company’s revenue saw a significant decrease in FY21, falling by 52 per cent to Rs 53 crore.

Bounce is yet to make comments on the reported layoffs.

Despite this, the company did see income from interest on fixed deposits and other investments. Its total expenses were recorded at around Rs 358 crore, with employee costs accounting for nearly 40 per cent. 

Previously, in 2021, the company had let go of nearly 80 per cent of its workforce, which is at least 300 people. These layoffs were implemented as a cost-cutting measure during the economic downturn caused by the pandemic.

Bounce’s parent company, Wicked Ride Adventure Services, was founded in 2014 and initially operated as a luxury bike rental service.

The company has raised a total of $200 million from several investors including Sequoia Capital, Accel Partners India and Qualcomm Ventures. In 2020, it raised an additional $6.5 million from venture debt investor InnoVen Capital, bringing its total debt funding from InnoVen to around $12 million thus valuing the company at just over $500 million.

Comment on the Article

Please enter your comment!
Please enter your name here

7 − three =