As India’s quick-commerce platforms race to deliver everything from groceries to smartphones in minutes, electric mobility startup Yulu has capitalized on the surge, raising $93 million in fresh funding.
The Bengaluru-based company offers electric two-wheelers on weekly subscription plans, allowing delivery drivers to join platforms without purchasing their own vehicles. With a fleet of around 50,000 electric vehicles, Yulu reports logging approximately 1.6 million miles each week and powering more than 750,000 deliveries per day. The new capital will enable Yulu to expand its fleet to 200,000 bikes over the next two years and introduce faster electric two-wheelers tailored to various logistics applications.
The Series C round comprised $63 million in equity led by GEF Capital Partners and $30 million in debt financing. About $5.5 million of the equity portion was used to buy shares from seed investors whose fund tenures were nearing expiration, co-founder and CEO Amit Gupta said in an interview.
Sources familiar with the matter told TechCrunch that the deal valued Yulu at approximately $170 million post-money. Gupta declined to comment on the valuation but did not dispute the figure.
Existing investors Bajaj Auto and Magna International waived their pre-emptive rights and did not participate in the round, allowing GEF to secure its target ownership stake, Gupta said. He added that the startup expects this to be its final equity raise before an eventual public listing, with future fleet expansion financed primarily through debt and lease arrangements.
The company is on track to achieve profitability before interest and taxes next year, following positive EBITDA in the last fiscal year, Gupta told TechCrunch. He also noted that revenue grew seven-fold between fiscal 2023 and fiscal 2026, though he did not disclose specific figures.
The COVID Pivot
Founded in 2017 as a bike-sharing service for urban commuters, Yulu discovered its biggest opportunity during the COVID-19 pandemic when demand for food and grocery deliveries accelerated.
Today, approximately 95% of Yulu’s revenue comes from renting electric bikes to gig workers on weekly subscriptions, with the remainder generated by its station-based rental service in Bengaluru. The startup has also abandoned an earlier plan to sell bikes directly to consumers.
To drive its next growth phase, Yulu is launching a full-sized, higher-speed electric scooter called Yulu Express. Designed for longer-haul e-commerce deliveries, bike taxis, and express parcel services, this model addresses segments its slower fleet could not previously serve. About a third of the planned 200,000-vehicle fleet will consist of this new model, Gupta said.
While Yulu’s current low-speed fleet is manufactured by Bajaj Auto, the new high-speed scooter comes from a different Indian manufacturer, whose name Gupta declined to disclose. Approximately 500 of the new bikes are already operational in Bengaluru.
via TechCrunch