India’s Yulu Raises $93M as Quick-Commerce Boom Fuels E-Bike Demand
Electric mobility startup Yulu secures $93 million in fresh funding to expand its fleet to 200,000 vehicles amid booming quick-commerce demand.
Stock photo for illustration only, not from the actual event
- Yulu raised a $93 million funding round consisting of $63 million in equity and $30 million in debt.
- The startup aims to expand its electric vehicle fleet to 200,000 bikes over the next two years.
- Introducing Yulu Express, a higher-speed electric scooter designed for longer-haul logistics use cases.
- Roughly 95% of Yulu's revenue comes from renting electric bikes to gig workers on weekly subscription plans.
As India’s quick-commerce platforms race to deliver groceries and smartphones to consumers within minutes, electric mobility startup Yulu has capitalized on the surge by securing $93 million in fresh funding.
Headquartered in Bengaluru, the startup provides electric two-wheelers through weekly subscription plans, enabling delivery drivers to immediately join delivery platforms without purchasing their own vehicles. Yulu currently operates a fleet of approximately 50,000 electric vehicles, logging around 1.6 million miles weekly and powering more than 750,000 deliveries daily. The newly secured capital will enable the company to scale its fleet to 200,000 bikes over the next two years while launching faster electric two-wheelers tailored for diverse logistics needs.
Stock photo for illustration only, not from the actual event
The Series C financing round comprised $63 million in equity led by GEF Capital Partners alongside $30 million in debt financing. Co-founder and CEO Amit Gupta noted in an interview that roughly $5.5 million of the equity portion was utilized to buy out shares from seed investors whose investment funds were nearing the end of their lifecycles. Existing backers Bajaj Auto and Magna International chose not to participate after waiving their pre-emptive rights, allowing GEF to secure its targeted ownership stake.
"The startup expects this to be its final equity fundraising before an eventual public listing."
Amit Gupta
Gupta stated that the business is steering toward profitability before interest and taxes next year, following a positive EBITDA performance in the previous financial year. He also mentioned that the company experienced a seven-fold revenue growth between fiscal 2023 and fiscal 2026, though specific figures were not disclosed. Currently, about 95% of Yulu's revenue stems from renting electric bikes to gig workers on weekly subscriptions, with the remainder generated by station-based rentals in Bengaluru.
Yulu's recent funding underscores the rapid maturation of India's on-demand delivery ecosystem, which heavily relies on gig economy workers. By addressing the high barrier of vehicle ownership through subscription models, the company facilitates seamless workforce participation. Furthermore, introducing higher-speed vehicles allows Yulu to diversify beyond hyper-local deliveries into bike taxis and express parcel services.
To propel its next phase of growth, Yulu is introducing a full-sized, higher-speed electric scooter named Yulu Express. This model is engineered for longer-haul e-commerce deliveries, bike taxis, and express parcel services that its slower fleet could not previously service. Approximately one-third of the planned 200,000-vehicle fleet will consist of this new model, which is supplied by an undisclosed Indian manufacturer. About 500 of these new bikes are already deployed in Bengaluru and undergoing trials across three additional cities.
Presently, Yulu operates across 12 Indian cities, managing its own operations directly in Bengaluru, Mumbai, Delhi-NCR, and Hyderabad, while maintaining franchise partnerships in eight other markets. The startup aims to reach approximately 20 cities within the next year, eyeing Chennai and Pune as key expansion targets.
Source: TechCrunch
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