Yulu collects $19.25 million from Bajaj Auto and Magna

19 Mar 2024 , 10:36 AM

Yulu Bikes, a shared mobility services provider, has secured $19.25 million (about ₹160 Crore) from current strategic investors Magna and two-wheeler manufacturer Bajaj Auto, with whom it has a strategic collaboration to develop electric vehicles (EVs).

According to Amit Gupta, co-founder and CEO of Bengaluru-based Yulu Bikes, the funds would be used to introduce a new product, expand reach, and enhance technology. He also added that the equity injection will assist the firm accelerate its growth goals.

'Yulu has witnessed increased demand in recent quarters. Demand for our services in locations like Gurugram and Mumbai has far beyond our expectations,' Gupta added. '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 raised $104 million from investors, excluding this current round. Yulu's income has increased approximately fivefold in the last year alone. The firm provides electric two-wheeler services in the National Capital Region (NCR), Mumbai, and Bangalore.

In 2024, the business intends to launch a new vehicle designed specifically for e-commerce deliveries and expand its operations to five additional metros.

'Our existing products are designed for delivery partners serving food and grocery platforms. For e-commerce, there is a demand for vehicles with increased speed and payloads ranging from 40 to 50 kg,' Gupta explained. 'We plan to introduce a new electric scooter specifically for this category in the near future.'

Gupta believes Yulu has the potential to establish a 5 million-vehicle business in India over the next 3-5 years, focusing on freight and people transportation solutions.

Yulu's CEO stated that the company would continue to improve its leadership in the mobility-as-a-service (MaaS) segment by expanding existing business lines and entering new use cases and markets. He added there is a lot of inbound interest from institutional investors and that they want to raise additional funds later this year.

By the end of the year, the business plans to bring on partners who will be equipped with cars, technological stacks, and operating instructions on a revenue-sharing basis in ten locations. Yulu will provide services directly to larger cities (based on population).

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