SUMMARY
Sources told Inc42 that the layoff exercise impacted around 35% of workforce and all the verticals of the startup
However, Bolt.Earth cofounders told Inc42 the layoffs were restricted to the operating system team and attributed the exercise to the uncertainty surrounding the FAME II scheme
Inc42 has also learnt that the $20 Mn funding round announced by Bolt.Earth in October 2023 was closed in 2022 and the startup is now in talks to raise another $50 Mn
Bengaluru-based electric vehicle (EV) charging infrastructure and OS provider Bolt.Earth has sacked around 15-20% of its workforce in a restructuring exercise, according to the startup’s cofounders.
However, multiple sources told Inc42 that the layoffs impacted as much as 35% of the startup’s workforce. Bolt.Earth had around 250 employees prior to the restructuring exercise.
The layoff exercise began last week and the impacted employees were informed about the startup’s decision to sack them in a one-on-one interaction with the higher management, the sources added.
During a call with Inc42, the cofounders, Jyotiranjan Harichandan and Mohit Yadav, said the layoffs were restricted to the startup’s operating system (OS) team. They attributed the decision to the uncertainty surrounding the Centre’s FAME II scheme.
However, the sources said that the restructuring exercise involved all the verticals and employees from hardware, product, cloud, sales, among other teams were impacted. The startup is offering a severance pay based on the employees’ notice period.
“Our recent workforce reorganisation underscores our commitment to efficiency and profitability. We have fulfilled all severance obligations, providing active support to our team during this transitional period,” cofounder Harichandan said in a written statement while addressing Inc42’s queries.
Founded in 2017 by Harichandan and Yadav, Bolt.Earth offers charging solutions for businesses, individuals, real estate companies, fleet operators, and the government. It caters to charging requirements ranging from slow to fast charging. The startup’s three broad product categories include operating systems for EVs, charging infrastructure, and fleet management systems.
Interestingly, the restructuring exercise was undertaken almost two months after the startup announced raising $20 Mn in a funding round from Union Square Ventures, Prime Venture Partners, ITIGO Funds, among others. However, sources told Inc42 that the funding round was closed last year.
“This funding round that the company announced in the month of October was closed a year back. Not sure why they announced it this late,” said a person aware of the matter.
Responding to a question on the delay in the announcement of the funding round, the cofounders said it was a “strategic decision”.
Meanwhile, Inc42 has also learnt that the startup is in the middle of raising a $50 Mn funding from its existing investors and has already received commitments of around $30 Mn. However, the cofounders declined to comment on this.
One of the sources said that the restructuring exercise was related to the conditions put forward by the investors for the fresh capital infusion.
It is pertinent to note that startups like Third Wave Coffee and Udaan also laid off employees recently within weeks of them raising funding.
Bolt.Earth raised $4 Mn in its Series A funding round led by Union Square Ventures and Prime Ventures.
Its parent entity Revos Auto Tech Pte. Ltd reported an operating revenue of 1 Mn Singapore Dollars (SGD) (about INR 6.4 Cr) in FY23, an increase of 617% from SGD 142K (about INR 89 Lakh). However, the startup’s loss surged 209.7% to SGD 12.4 Mn (about INR 78.1 Cr) from SGD 4 Mn (about INR 25.2 Cr) in FY22.
Harichandran said, “Looking ahead, our focus remains on operational streamlining to fortify our position as a market leader, ensuring sustained and profitable growth for the company. Bolt.Earth is dedicated to driving innovation and remains resolute in our commitment to a sustainable future.”
