Yulu Raises $19.25 Million from Magna and Bajaj Auto to Accelerate Electric Vehicle Growth
Yulu, a shared mobility service provider, has recently raised $19.25 million, or about Rs 160 crore, in funding from Magna and Bajaj Auto, both of whom are existing strategic investors. This investment is part of an ongoing collaboration with Bajaj Auto aimed at developing electric vehicles (EVs).
The newly acquired funds will be directed towards launching a new product, expanding into new markets, and furthering technological advancements. In response to the growing demand for its services, particularly in cities like Gurugram and Mumbai, Yulu plans to use this investment to speed up its growth efforts.
Bengaluru-Based, Yulu has now amassed a total of $104 million in funding from its investors, not counting the most recent round. The company has seen its revenue increase nearly fivefold over the last year, operating electric two-wheeler services in the National Capital Region (NCR), Mumbai, and Bengaluru.
Looking ahead, Yulu is set to launch a new electric scooter designed specifically for e-commerce deliveries and aims to expand its reach to five additional metropolitan areas in 2024. With ambitions to grow its fleet to 5 million vehicles across India within the next 3-5 years, Yulu is focusing on providing mobility solutions for both goods and passengers.
The company is also preparing to begin talks for a Series C funding round in the upcoming quarter to further support its expansion goals. Moreover, Yulu is planning to scale its operations into smaller cities throughout India by partnering with businesses. These partnerships will operate on a revenue-sharing model, providing partners with vehicles, technology, and operational guidance in 10 cities by the end of the year. Meanwhile, Yulu will continue to offer its services directly in larger cities based on their population sizes.
Yulu’s objective is to operate in 18 cities by year’s end, directly and through its partners, and to deploy about 100,000 electric two-wheelers in 2024. This is a significant increase from its current fleet of 30,000 bikes. Additionally, Bajaj Auto is exploring opportunities to export the jointly developed products with Yulu through its global distribution network, indicating strong ongoing support for their partnership.
Rakesh Sharma, Executive Director of Bajaj Auto, and Matteo Del Sorbo, Executive Vice President of Magna International and Global Lead of Magna New Mobility, both praised the collaboration’s efforts towards enhancing shared and last-mile mobility, as well as the importance of green mobility solutions in emerging markets, underscoring the strategic alignment and shared vision that have fueled this investment.