An estimated 10% of the staff at Delhi-based electric vehicle startup Euler Motors were let go, with “restructuring” efforts given as the reason.
”Our decision to restructure, however, meant that we had to part with approximately 10% of our employees from across the organization – many of whom have made invaluable contributions to our growth and success,” a company spokesperson said in a statement.
All impacted employees received “adequate severance and support,” the company continued.
“We continue to maintain year-on-year growth with a strong product orderbook, and remain steadfast in our pursuit to develop the most superior products delivering the best ROI in the categories that we operate in,” the statement further said.
Approximately 500 people work for Euler Motors, according to the company’s LinkedIn profile. The initial report on the layoffs at Euler Motors came from Dealstreetasia.
In its series C fundraise, which was spearheaded by GIC Singapore, Euler Motors raised $60 million in October 2022. Along with Blume Ventures, Athera Venture Partners (previously Inventus India), QRG Holdings, ADB Ventures, and Moglix, these investors also participated in the funding round.
Despite a sizable round during the ‘funding winter,’ the layoffs by Euler Motors seem to be part of a course correction. Many startups have recently tried to reduce expenses in order to become profitable and sustain themselves.
When the business submits its financial results for the fiscal year ending March 2023, the effectiveness of these new cost-cutting initiatives will be closely examined. But Euler Motors reported a 60% scale growth in the prior fiscal year.
In the most recent fiscal year, its gross revenue increased to Rs 17.6 crore from Rs 11 crore in FY21.
Employee benefits made up 22% of the total cost, which increased by over 2X to Rs 12.37 crore in FY22, while the cost of materials increased by 2.8X to Rs 9.95 crore.
In comparison to FY21, Euler’s losses increased by almost 90% to Rs 36.3 crore in FY22. Its operating cash outflows during the same period were Rs 68.5 crore. Euler spent Rs. 3.22 for every rupee of operating income on a per-unit basis.
