Returning investors Bajaj Auto and Magna have invested $19.25 million in shared electric mobility company Yulu as part of a Series B round of funding. Yulu is also in talks to raise a Series C equity round.
The Bengaluru-based shared electric mobility firm, Yulu, has successfully raised $19.25 million in an equity round. This funding comes from returning investors, including Canadian auto-parts manufacturer Magna and Bajaj Auto Limited, as part of the continuation of its Series B round. Previously, in 2022, the startup had secured $82 million in its Series B round from the same group of investors, followed by an additional $9.1 million in debt financing from the US International Development Finance Corporation (DFC).
Yulu plans to use the newly acquired funds to solidify its position in the market by expanding its fleet of vehicles and operational locations and supporting product and technology innovations.
Amit Gupta, Co-founder and CEO of Yulu expressed that the company has witnessed a surge in demand in recent quarters. He highlighted that Yulu’s shared electric vehicle (EV) services have revolutionized urban delivery by increasing the proportion of environmentally friendly deliveries and creating job opportunities through innovative product features, technology-driven operations, and an exceptional customer experience.
Gupta also mentioned that the company is on track to secure a Series C round of funding and aims to explore new use cases and expand into new geographic areas.
Established in 2017 by Amit Gupta, RK Misra, Naveen Dachuri, and Anuj Tweari, Yulu currently operates a fleet of 30,000 electric vehicles across Bengaluru, Mumbai, Navi Mumbai, Delhi, and Gurugram. In February 2023, Yulu, in collaboration with Magna, launched a battery-swapping network called Yuma Energy as a joint venture. Yuma Energy provides Battery-as-a-Service to Yulu’s fleet as well as other original equipment manufacturers (OEMs).
Rakesh Sharma, Executive Director of Bajaj Auto, stated that the strategic partnership between Bajaj and Yulu extends beyond financial investment. He emphasized the potential in the shared and last-mile mobility sector and mentioned that the collaboration aims to leverage their combined expertise in consumer knowledge, technology, and manufacturing to establish a leading business in this domain.
With the latest funding round, Yulu’s total funding has reached approximately $124.5 million, according to data from market research and analytics platform Tracxn. As of September 2022, Yulu was valued at $182 million.
For the fiscal year 2023, Yulu reported a 40% increase in revenue compared to the previous year, amounting to Rs 42.8 crore. However, the company’s losses widened to Rs 95 crore due to increased operational expenses.
