Yulu eyes $100 million funding to expand EV operations

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Bengaluru-based electric mobility startup Yulu eyes funding worth $100 million in its Series C round. This new capital infusion will include both equity and debt components. The company aims to scale its fleet operations, enhance its AI-driven mobility platform, and capture further market share in the quick commerce segment. Notably, the expected funding will likely involve participation from existing backers like Bajaj Auto and Magna International. With over 40,000 electric vehicles already on the road, Yulu intends to cross the 1 lakh mark soon.

Yulu has already turned EBITDA positive and reached an annual recurring revenue (ARR) of $30 million. The company is seeing significant demand due to rapid growth in India’s quick commerce and food delivery sectors. With strategic partnerships with giants like Zomato, Zepto, Blinkit, and Swiggy, Yulu facilitates more than 20 million deliveries monthly. The startup also operates a dedicated battery-swapping infrastructure through its subsidiary Yuma Energy, helping reduce operating costs and scale efficiently.

Although its net loss widened to INR 135 Cr in FY24, up from INR 95 Cr in FY23, the company’s growth trajectory remains strong. The rise in operational expenses corresponds with its growing footprint and AI-led efficiency improvements. With this new round, Yulu is set to expand its presence in urban mobility and deepen its foothold in the gig economy.

1. Introduction: Yulu eyes funding to scale EV operations

Yulu eyes funding as it plans a major expansion of its electric vehicle operations across urban India. The company is currently in advanced discussions to raise $100 million in a Series C funding round. The new capital, a mix of debt and equity, will accelerate the scaling of its AI-backed EV fleet tailored for last-mile delivery.

2. Startup Background: Yulu’s vision and evolution

2.1. Foundation and Founders
Founded in 2017 by Amit Gupta, RK Misra, Hemant Gupta, and Naveen Dachuri, Yulu started as a mission-driven startup aiming to solve urban congestion and pollution through clean mobility solutions. The founding team brought together expertise from mobility, tech, and civic infrastructure backgrounds.

2.2. Business Model and Services
Yulu offers shared micro-mobility services powered by electric two-wheelers. These are primarily used for last-mile delivery and urban commutes. Yulu’s unique model integrates an AI-powered fleet management platform, GPS-enabled vehicles, and its proprietary battery-swapping network managed by Yuma Energy.

2.3. Revenue Streams
The startup earns revenue through B2B rentals for delivery partners and quick commerce platforms. It also monetizes its AI-fleet software and charges for vehicle usage, battery swaps, and fleet-as-a-service solutions. Its growth accelerated significantly with rising demand from companies like Zomato and Blinkit.

3. Funding Timeline: From Series B to now

3.1. Past Investments
In 2022, Yulu raised $82 million (around INR 653 Cr) in its Series B round. The round was led by Magna International with Bajaj Auto as a co-investor. The funding was used to expand its EV fleet and AI infrastructure.

3.2. Current Round
Now, Yulu eyes funding of $100 million to deepen its market penetration. Existing investors are expected to return, reinforcing trust in its business model and future roadmap.

4. Growth Metrics and Market Position

4.1. Fleet Expansion
Currently operating over 40,000 EVs, Yulu aims to exceed 1 lakh electric two-wheelers soon. This scale is crucial for keeping up with the surge in last-mile delivery needs.

4.2. Revenue and Profitability
The startup turned EBITDA positive in the last fiscal and achieved $30 million in ARR. However, Yulu also reported a loss of INR 135 Cr in FY24 due to expanding operations and infrastructure.

4.3. Delivery Footprint
Yulu facilitates over 20 million deliveries every month across cities, especially through its deep integration with India’s top quick commerce brands.

5. Competitive Landscape and Industry Trends

5.1. Quick Commerce Surge
India’s quick commerce segment is booming, pushing up demand for affordable, efficient delivery vehicles. Yulu’s AI-based approach gives it an edge in terms of operational efficiency.

5.2. Competition and Partnerships
Startups like Ola Electric and Rapido are entering this segment. However, Yulu’s strategic tie-ups with leading delivery companies provide a first-mover advantage.

6. Technology and Sustainability

6.1. AI-Driven Fleet Optimization
Yulu leverages AI to optimize routing, charging, and fleet allocation. This not only improves uptime but also cuts down cost by 30-40%.

6.2. Battery Swapping with Yuma Energy
Its battery-as-a-service model enables faster vehicle turnaround, minimizing downtime. Yuma Energy plays a key role here.

7. Challenges and Financial Health

7.1. Rising Expenses
Yulu’s losses grew due to heavy investments in technology, battery infrastructure, and fleet expansion.

7.2. Long-Term Viability
Despite short-term losses, the long-term model looks promising due to its growing client base and recurring revenue.

8. Yulu eyes funding: A critical juncture

Yulu eyes funding not just to expand its fleet but also to cement its leadership in India’s fast-growing urban mobility sector. This Series C round will define its growth curve for the next few years.

9. Learning for Startups and Entrepreneurs

9.1. Scalability with Tech-Backed Models
AI and IoT can unlock massive cost-efficiencies in high-scale operations.

9.2. Target B2B Demand
Serving the booming gig economy through tailored solutions is a profitable niche.

9.3. Partnerships Over Ownership
Strategic alliances with large platforms can outperform traditional marketing and distribution.

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When it comes to covering electric mobility startups driving India’s delivery economy, The Startups News is the go-to destination. We bring daily tech news, venture capital trends, and startup funding updates that matter. From tracking EV ecosystem developments to startup founders’ insights, we provide comprehensive coverage to help Indian startups grow and scale.