Euler Motors Restructures, Lays Off 10% of Workforce, Six Months After $60M Funding Round

• ByStartupStory     |    April 11, 2023

Euler Motors, an electric vehicle (EV) manufacturer, has announced a restructuring effort that includes laying off 10% of its workforce. This comes just six months after the company raised $60 million in its Series C funding round. According to a statement from a company spokesperson on April 10th, the restructuring is aimed at improving customer delivery and meeting investor expectations of increased efficiency in light of changing global circumstances.

Euler Motors, the electric vehicle (EV) manufacturer, has announced a restructuring decision that has resulted in approximately 10% of its employees being laid off. The company claims to have provided “appropriate” severance to the affected employees. Euler Motors, which has over 500 employees according to its LinkedIn page, is estimated to have impacted around 180-200 employees. This development comes at a time when the Indian startup ecosystem has already witnessed over 24,000 employee layoffs since last year, attributed to global macroeconomic uncertainty and funding challenges.

Layoffs in the electric vehicle (EV) industry have been uncommon due to widespread adoption and investor capital infusion. However, Euler Motors is the second EV startup to report layoffs, following Bounce, which laid off approximately 3%-4% of its workforce in January this year. Founded by Saurav Kumar in 2018, Euler Motors operates in the commercial EV segment, specifically three-wheelers. The company has established partnerships with major ecommerce and hyperlocal delivery players such as BigBasket and Flipkart, providing them with EV fleets for logistics and delivery purposes.

 

Despite the growing demand for electric three-wheelers, particularly in B2B use cases, Euler Motors has been experiencing an increase in net loss. The startup’s net loss nearly doubled to INR 36.3 crore in FY22, even though its operating revenue saw a significant jump of 58%. However, its expenses also increased by 1.8 times during the same period. Nevertheless, Euler Motors stated in a recent statement that it continues to maintain year-on-year growth, boasting a “strong” product order book, and remains committed to developing superior products that offer the best return on investment (ROI). The startup’s most recent funding round was led by Singapore’s sovereign fund GIC in October last year, with participation from investors such as Blume Ventures, ADB Ventures, and Athera Venture Partners, among others.

Euler Motors‘ recent layoff comes shortly after the launch of its new vehicle. In a separate statement, the startup announced the introduction of its advanced version of HiLoad EV 2023, which it claims has the highest battery pack and range among three-wheeler cargo vehicles. Euler Motors competes with established players in the industry such as Piaggio, Mahindra, and Altigreen Propulsion Labs, among others. According to Vahan data, commercial three-wheeler goods vehicle registrations increased from 71,657 in 2021 to 82,850 in 2022. In 2023, already 28,441 units of these vehicles have been registered, indicating a growing market demand.

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