Yulu Secures $3 Million Funding from Magna International Through a Rights Issue (Update)
In a recent development, electric mobility startup Yulu has secured an investment of $3 million from Magna International, a global automotive supplier. This investment comes as part of a larger funding context, with the details of a potential larger funding round yet to be disclosed.
The investment from Magna International was made via a rights issue, adding to the $25.7 crore Yulu raised earlier this year. However, there appears to be some discrepancy in the information provided regarding Yulu's fundraising plans. Initially, there was a plan to raise INR 70 crore ($8.2 million) from co-founders and existing investors. Yet, the specifics of a completed funding round for $3 million or the reasons for its closure remain unclear.
Despite this, Yulu continues to thrive, turning EBITDA positive for a few months in FY25 and maintaining profitability since the start of FY26. The company's net loss increased by 50% to INR 142.8 crore from INR 94.8 crore in FY23, but its operating revenue saw a significant rise. In FY24, Yulu reported a 2.6X increase in operating revenue to INR 122.7 crore from INR 46.5 crore in the previous fiscal year.
Yulu's success can be attributed to its innovative offerings. The Yulu DeX scooter, designed specifically for delivery jobs, includes features like a goods carrier and phone holder. This scooter helps delivery workers cut costs by up to 40%, making it a popular choice among gig workers, especially those working with quick commerce companies. Notably, the Yulu DeX scooter does not require a license, further simplifying its use.
The scooter can travel up to 60 km on a single charge, making it a reliable choice for delivery workers who need to cover significant distances. Yulu's services are also being challenged by other players in the market, such as Zypp Electric and Bounce, who are also experiencing a rise in demand.
In addition to its investment from Magna International, Yulu has also secured investments from Amit Gupta, Hemant Gupta, Naveen Dachuri, Rajendra Kumar Mishra, and Bajaj Auto. The company was last valued at $210 million in February 2024.
Looking ahead, Yulu is eyeing to raise $100 million in its Series C round later this year. The company's strategic focus on providing affordable and efficient electric mobility solutions for gig workers is expected to continue, as it navigates the competitive landscape of the electric mobility sector.
The investment from Magna International, a global automotive supplier, was made via a rights issue, adding to the $25.7 crore Yulu already raised this year. Furthermore, Yulu is planning to raise an additional $100 million in its Series C round later this year, focusing on investing in technology to enhance its business and providing affordable electric mobility solutions for gig workers.
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