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Sequoia Capital-Backed Bounce Lays Off 3-4% Workforce

The EV manufacturer had laid off nearly 80 per cent of its workforce, around 300 people, in 2021

Sequoia Capital-Backed Bounce Lays Off 3-4% Workforce
POSTED ON January 07, 2023 11:53 AM

Electric two-wheeler manufacturer Bounce has laid off about 3 to 4 per cent of its staff. The workforce, which accounts for about 40 to 50 employees, has been laid off across verticals like customer support, and finance, among others.

The said layoff has been done as part of company restructuring, cost cutting and the company’s increased focus on the EV manufacturing business, as per multiple media reports.

“The focus at Bounce is shifting to the Original Equipment Manufacturer (OEM) business and the layoffs are to drive efficiency for the same,” Moneycontrol reported.

Once focussed on bike rental services, Bounce shifted to making EVs, Bounce Infinity, while slowing down the bike rental operations, after being hit by the unprecedented Covid-19 pandemic.

In the financial year (FY) 2021, the company’s revenues shrunk by about 52 per cent, registering Rs 53 crore. It majorly earned income from fixed deposits' interest and other investments. The same year Bounce’s total expenses were recorded at around Rs 358 crore with only employee costs accounting for about 40 per cent.

In the previous year, the company laid off nearly 80 per cent of its workforce which is at least 300 people, including senior leaders, as part of a cost-cutting exercise, as reported by Moneycontrol.

Co-founded by Vivekananda Hallekere, Anil G, and Varun Agni in 2014, WickedRide Adventure Services, Bounce’s parent company, was started as a luxury bike rental service under the name, WickedRide. It manufactures EV scooters and allows customers to directly rent out its scooters from designated points. 

Bounce has so far raised $200 million from investors such as Sequoia Capital, Accel Partners India, Chiratae Partners, Omidyar Network, Vistra ITCL, SCI Investments, and Qualcomm Ventures.
 

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