EV Charging Platform Bolt.Earth Layoffs as Part of Restructuring, Shutting Down 2 Segments

Bolt.Earth is an innovative company founded in 2017 by Mohit Yadav and Jyotiranjan Harichandan with the aim of making electric vehicles (EVs) more accessible, especially focusing on 2 and 3-wheeled EVs in emerging markets. The company has made significant strides in the EV industry, including establishing the world’s largest EV charging infrastructure, launching India’s first peer-to-peer EV charging network, introducing an advanced OS for electric vehicles, and deploying initiatives such as the Re 1 campaign to incentivize EV charging adoption. 

Related: Tesla Starts Manufacturing Vehicles in Germany for India Shipment

Bolt.Earth, an electric vehicle (EV) charging infrastructure provider based in Bengaluru, recently underwent its second round of restructuring within four months. Employees from various teams were affected by the layoffs earlier this week.

According to the sources, the reason behind the layoffs was a financial strain due to the startup’s inability to secure fresh funding. They estimated that approximately 70-100 employees, constituting around 40%-60% of the company’s workforce, were impacted by this latest restructuring.

In response, Bolt.Earth acknowledged the layoffs but contested the reported percentage, deeming it as “highly exaggerated.”

“We have made the tough decision to downsize our workforce, but the number of layoffs was kept to a minimum as part of our strategic realignment,” the statement explained, without specifying the exact number of employees affected.

The startup cited a shift in focus towards its core business – the charging network, as the reason for the workforce adjustment.

Established in 2017 by Jyotiranjan Harichandan and Mohit Yadav, Bolt.Earth provides electric vehicle charging solutions for a variety of clients, including businesses, individuals, real estate companies, fleet operators, and government entities. The startup offers three main product categories: an Operating System (OS) for electric vehicles, charging infrastructure, and a fleet management system.

According to our report, the startup has closed down its operating system and fleet management system divisions.

Confirming this decision, Bolt.Earth stated, “We have chosen to discontinue our OS System and fleet management system verticals. However, we are committed to offering continued support to our existing OS and IoT customers, ensuring they receive the high-quality service they have come to expect from us.”

Bolt.Earth clarified that the recent layoffs only impacted the product and tech teams dealing with OS and fleet management systems. They emphasized that other vital departments crucial for our focused business strategy remain untouched by this move. Affected employees will receive 1-2 months of severance pay, the startup ensuring support during this transition period.

This round of layoffs follows a previous one about four months ago when the startup had to let go of approximately 15-20% of its workforce.

“Previously, the company’s founders clarified that the staff reductions were solely focused on the OS team, citing the uncertain landscape surrounding the Centre’s FAME-II scheme as the rationale behind their decision.

It’s worth noting that in October of last year, Bolt.Earth disclosed securing $20 million in a funding round, with contributions from Union Square Ventures, Prime Venture Partners, ITIGO Funds, and others.

“During the previous year, Bolt.Earth was in discussions with investors aiming to secure approximately $50 million, and had already secured a commitment of $30 million.

In their most recent statement, Bolt.Earth responded to inquiries about this funding round by stating, “We’re currently in talks with potential investors. Although we’re optimistic about our business model and the increasing demand for clean energy solutions, we believe it’s best to keep the details of these discussions confidential for now.”

The startup secured $4 million in its Series A funding round, with Union Square Ventures and Prime Ventures taking the lead.

When it comes to the financial side of things, Bolt.Earth’s parent company, Revos Auto Tech Pte. Ltd, revealed an operating revenue of 1 million Singapore Dollars (SGD) (roughly INR 6.4 crore) in FY23, marking a remarkable surge of 617% from SGD 142K (around INR 89 lakh) previously. However, its losses also saw a significant increase, jumping by 209.7% to SGD 12.4 million (about INR 78.1 crore) from SGD 4 million (approximately INR 25.2 crore) in FY22.

Although Bolt.Earth didn’t disclose its financial figures for FY24, the company stated that it experienced substantial revenue growth throughout the year.

Bolt.Earth, an EV charging infrastructure provider, recently underwent its second round of restructuring, leading to a 40%-60% reduction in its workforce due to financial strain from the inability to secure fresh funding. The company focused on its core business, the charging network, while closing its OS and fleet management system divisions. Impacted employees will receive 1-2 months of severance pay. Although they secured $20 million in funding previously, the current funding discussions remain confidential. The company’s parent company, Revos Auto Tech Pte. Ltd, experienced a significant surge in operating revenue in FY23, but also saw substantial losses.