Electric mobility start-up Yulu raises $19.25M from Bajaj Auto, Magna
What's the story
Yulu, an electric mobility start-up, has secured $19.25 million in funding from existing investors Bajaj Auto and Magna.
The financial boost will help Yulu enhance its market presence and expand its vehicle fleet, operational locations, and product innovations to meet increasing user demand.
Yulu is also aiming for an IPO in 2026 and is confident about reaching profitability targets by the first half of this year.
Growth through partnerships
Bajaj Auto increases stake to nearly 19%
Bajaj Auto has increased its stake in Yulu to 18.8% of the paid-up share capital with an additional Rs. 45.75 crore investment.
Yulu currently operates 30,000 EVs across Bengaluru, Mumbai, Navi Mumbai, Delhi, and Gurugram, competing with start-ups like Zypp Electric and Vogo.
The company gained recognition through partnerships with delivery and quick commerce giants such as Swiggy, Zomato, and Zepto.
Fund utilization
Equity infusion to fast-track growth plans
Amit Gupta, Yulu's co-founder & CEO, stated that the new funds will accelerate the company's expansion plans.
He stated that Yulu has seen demand speeding up in the last two quarters.
Gupta added that in particular, shared EV services have transformed the urban delivery landscape by increasing the share of 'green deliveries' while enabling livelihoods.
More funding
Yulu aims to raise Series C funding this year
Gupta also revealed that Yulu plans to raise Series C funding this year to strengthen the mobility-as-a-service (MaaS) sector by deepening existing business lines.
In Series C funding, investors inject capital into established businesses with the hope of doubling their returns.
Gupta also plans to expand Yulu to new use cases and a diverse geography.
The Bengaluru-based company's revenue rose 44% to Rs. 42 crore in FY23, but its losses widened 71% to Rs. 95 crore during the same year.