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Electric Mobility Startup Yulu Raises $93 Million to Expand Fleet to 200,000 Vehicles

Bengaluru-based electric mobility startup Yulu has secured $93 million in fresh capital to expand its electric two-wheeler fleet and introduce faster delivery models across India. The funding comes as rising demand from quick-commerce, food delivery, and e-commerce platforms continues to drive adoption among gig economy drivers.

What Happened

Yulu raised a total of $93 million in a Series C funding round. The transaction consisted of $63 million in equity funding led by GEF Capital Partners alongside $30 million in debt financing. According to co-founder and Chief Executive Officer Amit Gupta, approximately $5.5 million from the equity round was utilized to purchase shares from seed investors whose fund cycles were concluding.

Existing institutional backers Bajaj Auto and Magna International waived their pre-emptive rights, enabling GEF Capital Partners to secure its intended ownership stake. People familiar with the transaction reported that the round valued Yulu at approximately $170 million post-money, a figure Gupta did not dispute while declining direct comment on valuation.

Key Highlights

  • Capital Structure: The funding comprises $63 million in equity and $30 million in debt financing.
  • Fleet Growth Target: Yulu intends to scale its current fleet of approximately 50,000 electric vehicles to 200,000 units over the next two years.
  • Operating Volume: The company currently records around 1.6 million miles weekly and supports more than 750,000 daily deliveries.
  • Business Model: About 95% of revenue comes from renting electric two-wheelers to gig workers on weekly subscription plans, while station-based rentals in Bengaluru generate the remainder.
  • New Vehicle Class: The startup is rolling out a higher-speed model called Yulu Express for express parcel deliveries, long-haul e-commerce, and bike taxis.
  • Geographic Footprint: Operating across 12 cities, Yulu plans to expand to around 20 cities within the next year, with Pune and Chennai identified as key targets.
  • Financial Trajectory: After reaching positive EBITDA in the previous financial year, the startup aims to become profitable before interest and taxes in the coming year.

Why This Matters

Founded in 2017 as a commuter bike-sharing platform, Yulu pivoted its operational focus during the COVID-19 pandemic toward gig delivery workers. By offering electric vehicles through weekly subscription arrangements, the platform enables delivery personnel to work for platforms such as Amazon and Flipkart without purchasing their own vehicles.

The company also plans to use future debt and lease financing rather than additional equity rounds for subsequent fleet expansion, framing this Series C round as its final planned equity raise prior to an eventual initial public offering. Revenue grew seven-fold between fiscal 2023 and fiscal 2026, according to company statements.

What to Watch Next

Yulu plans to deploy its high-speed Yulu Express model across target markets, intending for the new vehicle to comprise roughly one-third of its planned 200,000-vehicle fleet. While its low-speed vehicles are manufactured by Bajaj Auto, the faster model is being produced by an unnamed Indian manufacturer, with about 500 units currently deployed in Bengaluru and additional trials underway in three cities.

Geographically, Yulu is preparing to scale its presence from 12 cities to approximately 20 cities over the next year. It will maintain direct operations in hubs like Bengaluru, Mumbai, Delhi-NCR, and Hyderabad, while utilizing franchise partners in secondary markets.

Frequently Asked Questions

How much funding did Yulu raise in this round?

Yulu raised $93 million, consisting of $63 million in equity led by GEF Capital Partners and $30 million in debt financing.

What is Yulu Express?

Yulu Express is a full-sized, higher-speed electric scooter designed for long-haul e-commerce, express parcels, and bike taxi services, serving logistics needs beyond the range of Yulu’s low-speed fleet.

Who are Yulu’s primary customers?

Yulu’s primary customers are gig delivery workers who rent vehicles via weekly subscriptions to service e-commerce, food delivery, and quick-commerce orders.

Source: TechCrunch