Yulu Turns EBITDA Positive, Breaches $30 Mn ARR On Rising Quick Commerce Demand

Electric mobility startup Yulu claims to have crossed annual recurring revenue (ARR) of $30 Mn and also turned EBITDA (earnings before interest, taxes, depreciation, and amortisation) positive on the growing demand for quick commerce and food delivery services as well as supportive government policies.

Currently, Yulu has a fleet of over 40,000 electric vehicles and is looking to double down on its plan to deploy one lakh EVs by 2025. To fuel this expansion, it will raise $100 Mn (around INR 839.6 Cr) in its Series C funding round over the next year.

Yulu, cofounded by Amit Gupta, RK Misra and Naveen Dachuri in 2017, offers electric-two wheeler mobility solutions in Bengaluru, Delhi NCR, and Mumbai. The startup now plans to expand to cities like Hyderabad, Kolkata, and Chennai.

In September last year, Yulu raised $82 Mn (INR 653 Cr) in its Series B round of funding, which was led by the US-based Magna International and saw participation from Bajaj Auto.

The startup claims to facilitate over 20 Mn deliveries per month, claiming to save 30-40% cost compared with traditional fuel vehicles. The company says that its AI powered platform allows it to scale while maintaining efficiency. 

“The simplicity and ease of our platform allow gig workers without vehicles to join the delivery workforce, while also addressing the crucial supply gap in the quick commerce value chain,” said Amit Gupta.

Yulu claims to cover about 100% of all the dark stores. It further says that its EVs comprise 35-80% of all vehicles at the store level and claims to have increased its revenue and users by more than 7X in the last 24 months. 

The growth is also supported by its battery-swapping network, Yuma Energy, and partnerships with players in the quick commerce space like Zomato, Zepto, Blinkit, Swiggy, among others. 

The company is also eyeing to grow on the back of central and state level policies to boost transport electrification and ecommerce– including government backed Open Network for Digital Commerce (ONDC). 

The company’s consolidated net loss widened 71% year-on-year (YoY) to INR 94.9 Cr in the financial year 2022-23 (FY23) as the company’s expenses jumped with the expansion of its battery swapping infra and increasing headcount.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.