A Sequoia capital-backed bounce reduces its workforce by 3-4%

• ByStartupStory     |    January 7, 2023

Bounce, a manufacturer of electric two-wheelers, has laid off 3–4% of its workforce. The workforce, which consists of 40 to 50 individuals, has been reduced in size across a variety of industries, including customer service and finance.

According to several media reports, the aforementioned layoff was carried out as part of the company’s restructuring, cost-cutting measures, and increasing concentration on the EV manufacturing industry.

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

After being affected by the extraordinary Covid-19 outbreak, Bounce, which had previously concentrated on providing bike rental services, has since switched its focus to creating EVs, Bounce Infinity.

The company’s revenues fell by around 52% in the fiscal year (FY) 2021, totaling Rs 53 crore. Interest on fixed deposits and other investments were its main sources of income. The same year, solely labour costs accounted for around 40% of Bounce’s overall expenses, which were estimated to be around Rs 358 crore.

According to Moneycontrol, the corporation lowered costs by firing approximately 80% of its personnel, or at least 300 workers, including senior leaders, during the preceding year.

WickedRide Adventure Services, the parent company of Bounce, was established as a high-end bike rental service in 2014 by Vivekananda Hallekere, Anil G, and Varun Agni. It produces electric scooters and enables users to rent them out straight from predetermined locations.

Investors including Sequoia Capital, Accel Partners India, Chiratae Partners, Omidyar Network, Vistra ITCL, SCI Investments, and Qualcomm Ventures helped Bounce raise $200 million to far.

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