Yulu Raises $19 M from Magna and Bajaj Auto

• ByStartupStory     |    February 23, 2024

Shared mobility provider Yulu Bikes raises $19.25 million from existing investors Magna and Bajaj Auto, aiming to expand its reach and launch new products. The Bengaluru-based company, known for its strategic partnership with Bajaj Auto for electric vehicle development, plans to utilize the funds to accelerate growth plans, including the launch of a new product and technological advancements.

According to Yulu CEO Amit Gupta, the increased demand for their services in cities like Gurugram and Mumbai necessitated additional capital to sustain their growth momentum. Gupta stated, “To maintain this pace of growth and fast track our expansion plans, we unlocked additional capital through issuance of shares to our existing investors.”

Yulu has seen remarkable revenue growth, experiencing nearly a fivefold increase over the last year. Operating electric two-wheeler services in the National Capital Region (NCR), Mumbai, and Bengaluru, the company aims to introduce a new vehicle tailored for e-commerce deliveries and expand operations to five more metros in 2024.

Gupta elaborated on the plans for a new electric scooter suited for e-commerce deliveries, highlighting the need for vehicles with higher speed and payload capacities. He mentioned, “Our current products are suited for use by delivery partners for food and grocery platforms. E-commerce requires vehicles with higher speed and payloads of 40-50 kg.”

Yulu envisions significant growth potential in both cargo and people mobility solutions, aiming to establish a 5 million-vehicles business in India over the next 3-5 years. Gupta revealed plans to initiate discussions for a Series C funding round next quarter to further fuel their expansion.

Yulu plans to strengthen its leadership in the mobility-as-a-service (MaaS) segment by deepening existing business lines and exploring new use cases and geographies. Gupta emphasized, “There is a lot of inbound interest from institutional investors and will raise additional capital later this year.”

In addition to direct services, Yulu is in the process of partnering with businesses to scale up operations in smaller Indian cities. Gupta stated, “We will bring on-board partners who will be provided with vehicles, technology stack and operational guidelines on a revenue-sharing basis in 10 cities by the end of the year.”

Yulu aims to offer services in 18 cities by the end of the year, with plans to deploy approximately 100,000 electric two-wheelers, more than three times the current fleet size. Bajaj Auto, through its strategic partnership with Yulu, plans to leverage its global distributor network for potential exports of products co-developed with Yulu.

Rakesh Sharma, executive director of Bajaj Auto, highlighted their collaborative approach, stating, “We see very good potential in the space of shared and last-mile mobility.” Matteo Del Sorbo, executive vice president of Magna International, emphasized the importance of green mobility solutions in emerging markets, showcasing Yulu’s journey as a prime example.

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