Bengaluru-based electric mobility startup Yulu has raised $93 million in a Series C round as India’s booming quick-commerce sector fuels demand for e-bike rentals, aiming to grow its fleet from 50,000 to 200,000 vehicles within two years and introduce faster electric scooters for new delivery use cases.
- Raised $93M series C with $63M equity and $30M debt financing
- Plans to expand fleet fourfold to 200,000 e-bikes in two years
- Launching Yulu Express, a higher-speed scooter for logistics
What happened
Yulu, an Indian electric mobility startup known for its electric two-wheeler rentals, successfully closed a $93 million Series C funding round. This investment consists of $63 million in equity, led by GEF Capital Partners, and $30 million in debt financing. The fresh capital will enable Yulu to grow its existing fleet of approximately 50,000 vehicles to 200,000 over the next two years. Additionally, the startup plans to introduce a new, faster electric scooter model, named Yulu Express, targeted at longer-distance logistics and delivery applications.
The funding round also included a $5.5 million share buyback component used to repay early seed investors, while existing investors Bajaj Auto and Magna International did not participate in the new round. Yulu is moving towards becoming profitable before interest and tax expenses, having achieved positive EBITDA in the previous financial year. The startup reported a seven-fold revenue increase between fiscal 2023 and 2026, illustrating its rapid growth trajectory fueled by the surge in India’s quick-commerce demand.
Why it matters
Yulu plays a critical role in enabling gig economy delivery workers across India by providing a convenient alternative to owning electric two-wheelers. By offering weekly subscription plans for its e-bikes, Yulu lowers entry barriers for workers seeking to participate in the booming quick-commerce sector, which demands rapid delivery of groceries, food, and other essentials. The startup’s focus on zero-emission mobility aligns with broader sustainability goals while catering to a fast-growing market segment.
The introduction of the Yulu Express scooter represents a significant evolution in Yulu’s product line, addressing logistic challenges that require longer distances and higher speeds than their original fleet. This move will open up new segments such as bike taxis and express parcel services that were previously difficult to serve. Furthermore, by utilizing largely debt and lease financing for future expansion, Yulu is positioning itself for financial sustainability and preparing for a public offering.
What to watch next
In the coming months, observers will be focusing on how Yulu executes its rapid expansion to 20 cities, including notable markets like Chennai and Pune. The success of its Yulu Express model during pilot deployments in Bengaluru and other cities will be a key indicator of whether faster electric vehicles can meet the evolving needs of India’s logistics market. Expansion efforts alongside partnerships with leading quick-commerce platforms such as Amazon and Flipkart will also be critical to scaling usage.
Additionally, Yulu’s financial performance in the next year will be closely monitored as it aims to sustain positive EBITDA and move towards pre-tax profitability. The company’s strategy to rely more on debt and leasing arrangements instead of equity could serve as a model for other mobility startups aiming for sustainable growth. Finally, a potential initial public offering will draw attention as it would mark a milestone for India’s electric mobility sector and the gig economy ecosystem at large.