Zypp Electric, an electric vehicle (EV) rental company serving last-mile delivery, has allocated employee stock ownership plans (ESOPs) worth ₹11 crore to more than 250 employees, the company said in a statement. The grants were made in September 2026.
The recipients make up 22% of the company's workforce and include more than 50 EV technicians, who maintain the fleet. The company said the grants span different functions and employee bands. It said it is planning growth towards an initial public offering (IPO) but did not give a timeline for a listing or details on the vesting terms of the new grants.
The allocation follows earlier ESOP-related steps. In 2023, Zypp carried out an ESOP buyback of about ₹1.5 crore involving 15 employees, giving them liquidity against part of their vested options. The company also said it is the only firm to offer ESOPs to gig delivery partners, a claim that was not independently verified. According to the company, the latest allocation extends ownership to a considerably larger group than the 2023 buyback, which covered 15 people.
Zypp reported that its net revenue in the April–June 2026 quarter (Q1 FY27) rose 88% from a year earlier. It said its EBITDA margin, a measure of operating profit before interest, taxes, depreciation and amortisation as a share of revenue, improved from -4% to 10% over the same period and has since risen to 17%. The statement does not specify the period covered by the 17% figure. The company's utilisable fleet grew 71% year-on-year to 30,000 vehicles in the quarter. All of these figures are company-reported and were not independently verified.
The company operates more than 30,000 EVs in eight cities. It said it is targeting a fleet of 100,000 vehicles across 20 cities by FY28, which would be more than three times its current fleet and 2.5 times its present city footprint. The financial year in India runs from April to March, so FY28 refers to the period ending March 2028.
Founded in 2017 and headquartered in Gurugram, Zypp rents two- and three-wheeled EVs to delivery workers and to businesses in e-commerce, quick commerce, food, grocery and pharmacy. Its services include EV-based delivery, rent-to-own schemes, fleet management and franchise models. The company said demand for EV-based delivery is rising across these segments and that its platform uses Internet of Things (IoT) and artificial intelligence (AI) tools for fleet management, delivery tracking, battery management and last-mile efficiency. It says it has reached more than 2.7 lakh (270,000) gig workers.
ESOPs give employees the option to buy company shares at a set price, usually after a vesting period. They are commonly used by Indian start-ups to compensate staff, particularly ahead of a planned public listing, when the value of the shares may become easier to realise.