Euler Motors, a Delhi-based electric vehicle startup, has laid off approximately 10% of its workforce, citing “restructuring” efforts.
”…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.
The company added that all affected employees were given “appropriate severance and support.”
“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.
Euler Motors has approximately 500 staff, according to the company’s LinkedIn page. Dealstreetasia had first reported about the layoffs at Euler Motors.
In October 2022, Euler Motors raised $60 million in its series C fundraise, led by GIC Singapore. The funding round also saw participation by Blume Ventures, Athera Venture Partners (formerly Inventus India), QRG Holdings, ADB Ventures, and Moglix.
The layoffs appear to be part of a course correction by Euler Motors despite a large round amidst the so-called funding winter. Of late, a bunch of startups have made efforts to trim costs to achieve profitability and increase sustenance.
For Eulers, the company has set a target of selling nearly 5,000 units (of EVs) by the end of the ongoing fiscal year. The company has commenced retail deliveries this year and plans to raise its production capacities to 1,000 units per month in the next fiscal year, company founder and CEO Saurav Kumar told Entrackr last year.
The effectiveness of these new cost-cutting measures will be scrutinized as and when the company files its numbers for the fiscal year ending March 2023. In the previous fiscal year, however, Euler Motors recorded a 60% growth in scale.
Its gross revenue grew to Rs 17.6 crore during the last fiscal year as compared to Rs 11 crore in FY21.
On the expense front, however, employee benefits contributed 22% to the total cost, which surged over 2X to Rs 12.37 crore in FY22, while the cost of materials spiked 2.8X to Rs 9.95 crore.
Euler’s losses jumped nearly 90% to Rs 36.3 crore in FY22 against Rs 19.14 crore in FY21. Its operating cash outflows were registered at Rs 68.5 crore during the same period. On a unit level, Euler spent Rs 3.22 to earn a rupee of operating income.