Yulu secures ₹25 crore from Magna, cofounders commit to larger ₹70 crore rights issue
Electric mobility startup Yulu is charging up for its next phase of growth with fresh funding and ambitious plans. The Bengaluru-based company has raised ₹25 crore (around $2.9 million) from existing investor Magna International, as part of a broader ₹70 crore rights issue approved last month.
According to regulatory filings accessed by Inc42, Yulu’s board approved the allotment of 1,826 Series B3 compulsorily convertible preference shares (CCPS) to Magna at ₹1,41,226.3 each on June 30.
This comes after the company earlier passed a resolution to raise ₹70 crore by issuing 5,004 Series B3 CCPS to its cofounders and key investors, including Bajaj Auto and Magna. Co-founder Amit Gupta committed the largest chunk — ₹28.2 crore — while fellow founders Hemant Gupta, Naveen Dachuri, and Rajendra Kumar Mishra are investing ₹14.1 crore each. Bajaj Auto and Magna have also pledged smaller contributions of about ₹2.8 lakh each.
A Yulu spokesperson confirmed the funding, clarifying that while approval for the ₹70 crore rights issue was sought as a formality, the company has so far raised ₹25 crore from Magna. The final conversion price of the CCPS will align with Yulu’s upcoming Series C round, expected later this year.
The company, last valued at $210 million after raising $19 million in February 2024, is now eyeing $100 million in its Series C round through a mix of equity and debt.
Yulu says operational efficiencies and higher scale have already started paying off, claiming to have achieved EBITDA-positive months in FY25 and sustained profitability since FY26 began.
Battling for gig EV supremacy
Founded in 2017, Yulu has carved a niche by providing electric scooters tailored for gig workers in quick commerce and hyperlocal delivery. Its flagship DeX scooter — designed to save delivery workers up to 40% on costs — boasts a license-free design, 60 km range per charge, and rider-friendly features like a goods carrier and phone holder.
Revenue more than doubled to ₹122.7 crore in FY24 from ₹46.5 crore in FY23, though losses widened by 50% to ₹142.8 crore during the same period.
Competition in the gig-worker EV segment is heating up, with rivals like Baaz Bikes, Ola Electric, Zypp Electric, and Bounce vying for a share of the market. While Baaz leverages battery-swapping networks to lower costs for riders, Ola has also announced a dedicated Gig range of scooters, though deliveries have yet to commence.
As demand for affordable and efficient delivery vehicles surges, Yulu hopes its head start and tailored offerings will help it stay ahead of the pack — with the fresh funds powering its next lap.