Electric mobility startup Yulu has raised $19.25 million in equity funding from existing investors Magna and Bajaj Auto Ltd.

“The additional capital raised will enable Yulu to maintain its growth streak and strengthen its market leadership as it expands in terms of vehicles, operational locations, and product and technology innovation to keep up with the rise in demand from users,” the company said in a statement on Friday.

Co-founder & CEO Amit Gupta said the equity infusion will help the company fast-track its growth plans. 

“Yulu has seen demand speeding up in the last couple of quarters. In particular, our shared EV services have transformed the urban delivery landscape by increasing the share of green deliveries while enabling livelihoods through disruptive product features, technology-powered operations, and a superior customer experience,” he said.

Gupta also confirmed that the company is looking to raise its Series C funding this year. He said Yulu aims to strengthen the mobility-as-a-service (MaaS) segment by deepening existing business lines and expanding into new use cases and geographical areas.

“Hence, we will look to raise additional funds to power our growth. We are gratified to see a lot of inbound interest from institutional investors and will raise additional capital later this year,” Gupta added

Bajaj Auto, in a regulatory filing on Thursday, said it has raised stake in Yulu to 18.8% of the paid-up share capital with an additional 45.75 crore investment in the company.

Yulu currently runs 30,000 EVs across Bengaluru, Mumbai, Navi Mumbai, Delhi and Gurugram. It competes with startups like Zypp Electric and Vogo in the e-bike market. 

The company gained prominence through its partnerships with players in the delivery and e-commerce landscape such as Swiggy, Zomato, and Zepto.

Mint had reported in January that Yulu aims to go public in 2026. The company is currently working towards improving its revenue, and is confident about reaching its profitability targets by the first half of this year.

The Bengaluru-based company’s revenue rose 44% to 42 crore in FY23, but its losses widened 71% to 95 crore during the year.

According to market research firm IMARC, India’s e-bike market size reached $1,178.0 million in 2023. The market is expected to cross $2,917 million by 2032, exhibiting a compound annual growth rate (CAGR) of 10.6% during 2024-2032.


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Published: 23 Feb 2024, 11:02 AM IST


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