Yulu raises $19.25 million from Magna, Bajaj Auto to fuel expansion plans

Yulu, an electric mobility startup, has successfully secured $19.25 million in equity funding from its existing investors, Magna and Bajaj Auto. The injection of additional capital aims to fuel Yulu's ongoing growth momentum and reinforce its position as a market leader in the realm of electric vehicle services. The company intends to utilize these funds to bolster its fleet, expand operational footprints, and drive innovations in products and technology to meet the escalating demand from consumers.

Amit Gupta, Co-founder & CEO of Yulu, expressed his optimism about leveraging this equity infusion to expedite the company's growth strategies. Gupta highlighted the surge in demand witnessed by Yulu, particularly in its shared EV services, which have played a transformative role in urban delivery scenarios, promoting eco-friendly practices while empowering livelihoods through pioneering features and technology-driven operations.

Looking ahead, Yulu is eyeing its Series C funding round slated for this year, with a focus on fortifying the mobility-as-a-service (MaaS) segment. Gupta emphasized the company's commitment to enhancing existing business verticals and exploring new use cases and geographic markets.

Bajaj Auto, one of Yulu's key investors, disclosed in a regulatory filing its increased stake in the company to 18.8% of the paid-up share capital, following an additional investment of ₹45.75 crore.

Currently operating 30,000 EVs across major cities like Bengaluru, Mumbai, Delhi, and Gurugram, Yulu faces competition from peers such as Zypp Electric and Vogo in the e-bike market. The company has gained traction through strategic partnerships with prominent players in the delivery and e-commerce sectors, including Swiggy, Zomato, and Zepto.

With aspirations to go public by 2026, Yulu is focused on enhancing its revenue streams and aims to achieve profitability targets by the first half of this year. Despite registering a 44% increase in revenue to ₹42 crore in FY23, the company also reported widened losses amounting to ₹95 crore during the same period.

As per IMARC's market research, India's e-bike market is on a robust growth trajectory, expected to surpass $2,917 million by 2032, driven by a compound annual growth rate (CAGR) of 10.6% from 2024 to 2032.

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