Yulu, a provider of shared mobility services, has secured $19.25 million (approximately Rs 160 crore) in funding from its existing strategic investors, Magna and two-wheeler manufacturer Bajaj Auto. This investment comes as part of Yulu’s ongoing partnership with Bajaj Auto to develop electric vehicles (EVs).
The funds will be utilized to launch a new product, expand market reach, and advance technological development. Yulu plans to leverage the equity infusion to accelerate its growth initiatives, responding to an increased demand for its services in cities like Gurugram and Mumbai.
The company, headquartered in Bengaluru, has raised a total of $104 million from investors, excluding this latest funding round. Over the past year, Yulu has witnessed a nearly fivefold increase in revenue, operating electric two-wheeler services in the National Capital Region (NCR), Mumbai, and Bengaluru.
Yulu intends to introduce a new electric scooter tailored for e-commerce deliveries and extend its operations to five more metros in 2024. With a focus on both cargo and people mobility solutions, Yulu envisions building a 5 million-vehicle business in India over the next 3-5 years.
The company also plans to initiate discussions for a Series C funding round in the next quarter to support its growth aspirations. Additionally, Yulu aims to collaborate with business partners to scale up operations in smaller cities across India.
The company will provide partners with vehicles, technology, and operational guidelines on a revenue-sharing basis in 10 cities by the end of the year while offering services directly in larger cities based on population.
Yulu’s goal is to offer services, directly and through partners, in 18 cities by the end of the year, deploying around 100,000 electric two-wheelers in 2024, more than three times its current fleet of 30,000 bikes in operation.
Beyond local sales, Bajaj Auto is exploring opportunities to export products developed in collaboration with Yulu through its global distributor network. Yulu’s strategic partnership with Bajaj Auto has garnered ongoing support, and Rakesh Sharma, Executive Director of Bajaj Auto, highlighted their joint efforts in shared and last-mile mobility, emphasizing the shared vision and strategy that led to the current investment.
Matteo Del Sorbo, Executive Vice President of Magna International and Global Lead of Magna New Mobility, emphasized Yulu’s journey as indicative of the crucial role played by green mobility solutions in emerging markets.
