Electric mobility startup Yulu has raised $93 million in a mix of equity and debt financing to significantly increase its electric vehicle fleet and broaden its service offerings beyond rental scooters to ecommerce logistics and express parcel delivery across India.
- Yulu raised $93 million with $63 million equity and $30 million debt
- Plans to expand fleet to 200,000 electric vehicles by 2028
- Launching Yulu Express scooter for logistics and parcel delivery
What happened
Yulu, an Indian electric mobility startup backed by Bajaj Auto, secured $93 million in fresh funding, comprising $63 million in equity and $30 million in debt. The equity funding was led by GEF Capital Partners, although details of other investors and lenders were not disclosed. This injection of capital aims to support a planned quadrupling of Yulu’s electric vehicle fleet and expansion into new service areas including ecommerce logistics, bike taxis, and express parcel delivery.
The company also announced the upcoming launch of Yulu Express, a full-sized, high-payload electric scooter designed specifically for delivery and courier services. This marks a strategic pivot from Yulu’s traditional focus on low-speed rental vehicles used primarily by quick-commerce and food delivery workers. The startup currently operates in 12 markets and facilitates over 750,000 daily deliveries, with a significant presence in India’s largest metropolitan hubs.
Why it matters
Yulu’s funding round and planned expansions highlight a growing investor appetite for commercial electric vehicle ventures in India that combine fleet scalability with deeper technology integration. The company’s shift toward delivery-focused vehicles is a response to evolving market needs following the COVID-19 pandemic, which reshaped urban mobility patterns and increased demand for gig economy logistics solutions.
Maintaining EBITDA positivity since April 2025 and showcasing a sevenfold revenue increase from FY23 to FY26, Yulu is positioning itself for long-term sustainability and profitability. Its collaborations with established partners like Bajaj Auto and Magna International for manufacturing and battery-swapping infrastructure enhance operational efficiency and competitive advantage. This momentum positions Yulu as a key player in India’s transition to sustainable urban mobility and last-mile delivery.
What to watch next
Market observers should monitor Yulu’s progress in scaling its electric vehicle fleet from 45,000 to 200,000 within the next two years and the performance of its Yulu Express scooter in the burgeoning ecommerce logistics and bike taxi sectors. Expanding service hubs and enterprise partnerships will be critical to sustaining growth and achieving operational leverage ahead of an anticipated stock market listing.
Additionally, industry stakeholders will track broader investor interest and capital flows into India’s commercial EV fleet segment. Competitors like Bounce Infinity and Baaz Bikes are also seeking funds, indicating a competitive funding environment where fleet utilization and access to debt financing remain key determinants of success in this capital-intensive sector.