[Update] Exclusive: Yulu Bags $3 Mn From Magna International Via Rights Issue

Update | July 7, 2:06 PM

Electric mobility startup Yulu has raised INR 25 Cr ( $3 Mn) from its existing investor Magna International. 

While the startup initially passed a resolution to raise an additional INR 70 Cr ($8 Mn) primarily from its founders, Yulu told Inc42 that it has closed the round at $3 Mn. 

“Yulu took approval for a rights issue of INR 70 Cr as a filing formality. Based on our current requirement, we have closed the round for INR 25 Cr,” a company spokesperson said.

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Original | July 4, 6:36 PM

Electric mobility startup Yulu is raising INR 70 Cr (about $8.2 Mn) from its cofounders and existing investors via a rights issue.

As per the startup’s regulatory filings accessed by Inc42, Yulu’s board, on June 17, passed a resolution to allot 5,004 Series B3 CCPS for INR 1,41,226.3 apiece to its existing shareholders, including cofounders and key investors Bajaj Auto and Magna International.

Among the cofounders, Amit Gupta will invest INR 28.2 Cr and Hemant Gupta, Naveen Dachuri, and Rajendra Kumar Mishra will infuse INR 14.1 Cr each. Bajaj Auto and Magna International will invest INR 2.8 Lakh each in the startup. 

Meanwhile, as per another MCA filing dated June 30, Yulu raised INR 25 Cr (about $2.9 Mn) from Magna International. 

The startup allotted 1,826 Series B3 Compulsorily Convertible Preference Shares (CCPS) to Magna International at INR 1,41,226.3 per share, including a face value of INR 100, to raise the funding. 

Confirming the funding, a Yulu spokesperson told Inc42, “The pricing disclosed in the MCA filing aligns with that of Yulu’s previous fundraise, though the final conversion price will be linked to the company’s upcoming Series C round.” 

The startup was last valued at $210 Mn in February 2024, when it raised $19 Mn from Bajaj Auto and Magna International.

The funding comes as Yulu is eyeing to raise $100 Mn in its Series C round later this year. “Yulu remains on course to raise $100 Mn in a mix of equity and debt to power its next phase of growth,” the spokesperson said. 

He added that with operational and scale-related efficiencies kicking in from product innovation, higher user density and improved cost structures, Yulu turned EBITDA positive for a few months in FY25, and has been consistently profitable since the start of FY26. 

“Growth momentum and strong product-market fit for quick commerce and hyperlocal logistics will drive further margin expansion for the company going forward,” the spokesperson said. 

Competition Rises For Gig EVs 

Founded in 2017, Yulu provides electric scooters for gig workers, especially those working with quick commerce companies. Its DeX scooter was one of the first designed specifically for such jobs. 

The escooter doesn’t need a licence, can go up to 60 km on a single charge, and includes features like a goods carrier and phone holder. Yulu says this helps delivery workers cut costs by up to 40%. 

Currently, Yulu earns a majority of its revenue from the DeX scooter. In FY24, the startup reported a 2.6X rise in operating revenue to INR 122.7 Cr from INR 46.5 Cr in the previous fiscal year. However, its net loss also increased by 50% to INR 142.8 Cr from INR 94.8 Cr in FY23. 

Meanwhile, competition has also been rising steadily in the space. For instance, Baaz Bikes uses its battery-swapping network and leases the scooters to gig workers, making it cheaper for riders to start using them. 

In November last year, Ola Electric also announced its foray into the gig workers’ EV space by unveiling its Gig range of escooters. However, the company is yet to begin deliveries of these escooters. 

Zypp Electric and Bounce are among the other companies in the space which are seeing a rise in demand.