Electric bike-sharing platform Yulu Bikes announced on Friday that it has successfully raised USD 19.25 million (Rs 160 crore) in equity funding through the issuance of shares to its existing strategic investors, Magna and Bajaj Auto Ltd. This capital infusion marks a significant milestone for Yulu as it aims to maintain its growth momentum and reinforce its position as a market leader.
The funding will empower Yulu to expand its fleet of vehicles, enhance operational reach, and drive innovation in products and technology to meet the increasing demand from users, according to a statement released by the company.
Bajaj Auto, in a regulatory filing on Thursday, revealed that it has increased its stake in Yulu Bikes to 18.8% of the paid-up equity share capital with an additional investment of Rs 45.75 crore. This move underscores the strategic partnership between Bajaj and Yulu, extending beyond financial investment.
Amit Gupta, Co-founder & CEO of Yulu, expressed enthusiasm about the company’s growth plans, stating, “The equity infusion will help the company fast-track its growth plans. Yulu has seen demand speeding up in the last couple of quarters, transforming the urban delivery landscape by increasing the share of green deliveries while enabling livelihoods.”
The company reported an impressive nearly 5x leap in revenue over the last year and is on track to raise its Series C round of funding soon. Yulu currently operates 30,000 electric vehicles (EVs) across key cities, including Bengaluru, Mumbai, Navi Mumbai, Delhi, and Gurugram.
Rakesh Sharma, Executive Director at Bajaj Auto, emphasized the strategic partnership, stating, “Bajaj and Yulu enjoy a strategic partnership, and our role extends beyond being a financial investor. We see very good potential in the space of shared and last-mile mobility.”
Matteo Del Sorbo, Executive Vice President of Magna International and Global Lead of Magna New Mobility, highlighted the vital role of green mobility solutions in emerging markets, showcasing Yulu’s journey.
Yulu plans to deepen its leadership in the mobility-as-a-service (MaaS) segment by expanding existing business lines, introducing new use cases, and exploring opportunities in different geographies.
This latest funding round brings Yulu’s total funding to date to $104 million, excluding the current investment from Magna and Bajaj Auto. The company is poised to launch new products, extend its operational footprint, and contribute to the evolving landscape of sustainable and shared mobility solutions.