Electric mobility startup Yulu has secured $93 million in fresh funding to capitalize on India's booming quick-commerce sector. The Series C round, led by GEF Capital Partners, will fuel a significant expansion of its electric vehicle fleet and support the launch of a new, faster scooter model. This investment underscores the growing demand for sustainable last-mile delivery solutions for gig economy workers across the country.
Funding Details and Valuation
The funding round consists of $63 million in equity and an additional $30 million in debt financing. This new capital injection places the Bengaluru-based company's post-money valuation at approximately $170 million. Notably, existing investors like Bajaj Auto waived their pre-emptive rights, allowing GEF Capital to secure its desired ownership stake.
Yulu's CEO, Amit Gupta, stated that this is expected to be the company's final equity fundraising before a potential public listing. The startup, which achieved positive EBITDA last fiscal year, is now targeting profitability before interest and taxes by next year. This financial strategy is supported by strong revenue growth, which the company reported increased seven-fold in recent fiscal periods.
Strategic Pivot and Business Model
Originally founded in 2017 as a bike-sharing service for urban commuters, Yulu successfully pivoted its strategy during the pandemic. The company identified a massive opportunity in serving the accelerating demand for food and grocery delivery services. Today, approximately 95% of its revenue is generated from renting electric bikes to gig workers through weekly subscription plans.
With a current fleet of around 50,000 electric vehicles, Yulu facilitates more than 750,000 deliveries daily. The company partners with major platforms like Amazon and Flipkart, but its direct customers are the delivery workers themselves. CEO Amit Gupta likens Yulu's role to being "the AWS of mobility," providing essential infrastructure for the gig economy.
Ambitious Expansion Plans
The new capital will enable Yulu to grow its fleet to 200,000 bikes over the next two years. A key part of this expansion is the introduction of the Yulu Express, a full-sized, higher-speed electric scooter. This new model is specifically designed to cater to longer-haul e-commerce deliveries, bike taxis, and express parcel services.
While Yulu's current low-speed fleet is manufactured by Bajaj Auto, the new high-speed scooter is being produced by a different Indian manufacturer. About one-third of the planned 200,000-vehicle fleet will consist of this new Yulu Express model. An initial batch of 500 new bikes is already operational in Bengaluru, with trials underway in three other cities.
Yulu currently operates in 12 Indian cities, managing its own operations in key hubs like Bengaluru, Mumbai, and Delhi-NCR. The company plans to expand its footprint to roughly 20 cities within the next year through a mix of direct operations and franchise partnerships. Key markets targeted for this next phase of growth include major urban centers such as Chennai and Pune.
This $93 million investment marks a pivotal moment for Yulu, empowering it to scale its operations and solidify its leadership in India's electric mobility space. By expanding its fleet and introducing new vehicle types, the company is well-positioned to meet the evolving needs of the last-mile delivery ecosystem. The successful execution of these plans will be a critical step on its journey toward a future public listing.
Source: TechCrunch