Shared mobility services provider Yulu Bikes is seeking to raise over $100 million in its Series C funding round to support expansion plans over the next few years.
Yulu, which has a strategic partnership with Bajaj Auto to develop electric vehicles, aims to more than double its fleet of electric two-wheelers—used for both passenger and cargo transport—to 80,000 by the end of this fiscal year. The funds will also support the launch of new products, expansion of its reach, and further technology development, according to Amit Gupta, co-founder and CEO of Bengaluru-based Yulu Bikes.
The company has raised more than $123 million in equity capital, including $52 million for Yuma, a joint venture with Magna International. Investors include Bajaj Auto, Magna International, Blume Ventures, 3one4 Capital, Wavemaker, Incubate Fund, Rocketship.vc, and various other institutional and angel investors. Additionally, Yulu has secured $12 million in debt financing from the US International Development Finance Corporation and Northern Arc. As of February 2024, Bajaj Auto holds an 18.8% stake in Yulu Bikes.
Currently, Yulu operates a fleet of 35,000 electric two-wheelers across five cities in India. Initially launched as a passenger mobility service, Yulu has adapted to shifting consumer behavior post-COVID, with an increased focus on delivery services driven by the rise in online shopping for food, groceries, and medicines. Now, 85% of Yulu’s revenue comes from goods deliveries.
To capitalize on this potential, Yulu plans to introduce a new mid-speed scooter with a higher payload, designed specifically for quick-commerce deliveries, by the end of 2024. Gupta noted that Yulu will continue to strengthen its leadership in the mobility-as-a-service (MaaS) sector by expanding its existing business and exploring new use cases and markets.
The company aims to finalize its Series C funding round this fiscal year. While Gupta did not specify the exact amount sought, he indicated that the goal is to surpass the $100 million raised in the previous round, citing strong interest from institutional investors both in India and abroad.
Yulu anticipates achieving operational profitability within the next two quarters. Despite having negligible burn rates and adequate capital, additional resources are needed to expand the fleet and continue growth. Yulu plans to offer its services in 15 cities by year-end and explore export opportunities for its co-developed products through Bajaj Auto’s global distributor network, with potential exports starting next year.
