[Update] Yulu In Talks To Raise $100 Mn

Bengaluru-based electric mobility startup Yulu is in discussions with a clutch of investors and institutions to raise $100 Mn in its Series C funding round.

The round will be a mix of equity and debt, a Yulu spokesperson confirmed the development to Inc42.

The company plans to deploy the proceeds to capitalise on its quick commerce growth.

“The planned fundraise of $100 Mn will comprise a mix of debt and equity. The funding will enable us to expand our fleet size, strengthen our balance sheet, and capture additional opportunities within the urban mobility domain,” the spokesperson added.

The development was first reported by ET.

The upcoming round will likely see participation from Yulu’s existing investors Bajaj Auto and Magna International.

In 2022, Yulu raised $82 Mn (around INR 653 Cr) in its Series B funding round led by the Magna International and saw participation from Bajaj Auto. Back then, the company wanted to expand its EV fleet to 1 Lakh+ EV two-wheelers.

Currently, Yulu has more than 40,000 EVs along with a vision to expand its fleet this year. 

Last year, the EV startup turned EBITDA positive and crossed annual recurring revenue (ARR) of $30 Mn on the back of growing demand for quick commerce and food delivery services as well as supportive government policies.

Yulu, which is in partnership with quick commerce giants, including Zomato, Zepto, Blinkit, Swiggy, among others, claims to facilitate over 20 Mn deliveries per month. 

Additionally, the startup claims to be saving 30-40% cost due to its AI powered platform, which allows it to scale while maintaining efficiency of the vehicle.

Besides, Yulu’s growth is also supported by its battery-swapping network, Yuma Energy. 

As per Tofler, Yulu’s net loss widened 42.3% to INR 135 Cr in the financial year ended in March 2024 (FY24), from INR 95 Cr in the previous fiscal year. 

EVs On Quick Commerce Ride 

India’s quick commerce segment has seen rapid growth over the past few years. The rise in the sector has pushed the need for delivery partners as well as a fuel-efficient fleet.

Besides Yulu, several mobility startups are trying to cash on this quick commerce wave.

For instance, ride-hailing unicorn Rapido recently kicked off discussions with Zepto, PhonePe’s Pincode and KPN to foray into the quick commerce delivery segment.

Last year, Ola Electric also unveiled two electric scooters (S1 Z and Gig), designed to cater to gig economy workers and cost-conscious consumers. Ola Gig is directly competing with Yulu, targeting delivery use cases.

Update | April 22nd, 4:00 PM 

Editor’s Note : An earlier version of the story stated that Yulu is raising $75-80 Mn in funding. However, the company’s statement to Inc42 confirmed that it is in discussions to raise $100 Mn as a part of its Series C funding round. The story’s headline and lede have been changed to reflect the changes.