Yulu Raises $19.25 Million in Equity Funding to Accelerate Growth

Yulu, the electric two-wheeler company, has secured a significant boost in its financial backing with a fresh injection of $19.25 million (approximately Rs 160 crore) in equity funding. The funding round, led by existing investors Magna and Bajaj Auto Ltd., marks another milestone in the company's journey towards consolidating its position in the electric mobility sector.

Yulu Funding

This infusion of capital will fuel Yulu's ambitious expansion plans, aimed at fortifying its market leadership through various avenues including vehicle fleet expansion, geographical footprint enhancement, and continual innovation in product and technology offerings. The company's commitment to providing efficient last-mile connectivity solutions remains unwavering as it strives to redefine urban mobility through its electric bike network and EV charging infrastructure.

We're happy to share that #Yulu has raised $19.25 Million (₹160 Cr) in equity funding from @MagnaInt & @_bajaj_auto_ltd

This will enable us to quickly unlock additional capital & cater to the spurt in demand for our shared #EV services.

Know more: https://t.co/eWrRKmZ7Qt pic.twitter.com/PXbjI04SzH

— Yulu (@YuluBike) February 23, 2024

Yulu's strategic collaborations, such as the joint venture with Canadian automotive supplier Magna under the name Yuma, have played a pivotal role in facilitating over 6.5 million battery swaps to date. Such initiatives underscore the company's dedication to sustainable mobility solutions and its relentless pursuit of excellence in the burgeoning Mobility-as-a-Service (MaaS) segment.

The latest funding round comes on the heels of Yulu's previous successful capital-raising endeavors, including a Series B funding round led by US-based Magna International, which saw the company raise $82 million in September 2022. Additionally, Yulu secured $3 million in debt financing earlier this year, bringing its total fundraising efforts to over $130 million thus far.

Future Outlook and Growth Trajectory

Looking ahead, Yulu remains bullish on its growth prospects, with co-founder and CEO Amit Gupta affirming the company's intention to pursue a Series C funding round in the near future.

Gupta emphasized Yulu's steadfast commitment to expanding its business lines, exploring new use cases, and venturing into untapped geographies to capitalize on emerging opportunities in the MaaS landscape.

Despite facing stiff competition from players like Zypp Electric, Bounce, and Ebikego, Yulu continues to chart an impressive growth trajectory. According to data from startup intelligence platform TheKredible, Yulu reported a significant jump in revenue from operations, reaching Rs 41.74 crore in FY23 compared to Rs 29 crore in FY22. However, the company also witnessed an increase in losses during the same period, underscoring the challenges inherent in the competitive mobility market.

Nevertheless, Yulu remains undeterred, buoyed by its nearly fivefold increase in revenue over the past five years and the promising outlook for the electric mobility sector. With a solid financial foundation and a clear vision for the future, Yulu is poised to drive innovation and shape the future of urban transportation in India and beyond.

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