India’s Yulu Startup Raises $93 Million to Expand Its Electric Bike Fleet

Amid the rapid growth of quick-commerce delivery services in India, electric mobility startup Yulu has successfully closed a new $93 million funding round. According to TechCrunch, the Bengaluru-based company offers electric scooters to delivery workers through weekly subscriptions, eliminating the need to purchase a vehicle. The funding is significant as it targets surging demand in the courier and logistics market. TechCrunch.com reports .

Yulu currently operates nearly 50,000 electric vehicles that cover around 1.6 million miles per week and support more than 750,000 deliveries a day. With the new funding, the company plans to expand its fleet to 200,000 bikes over the next two years and launch faster electric vehicles designed for various logistics tasks.

Funding Round and Future Plans

The Series C funding round included $63 million in equity led by GEF Capital Partners and $30 million in debt financing. In an interview, startup founder and CEO Amit Gupta said approximately $5.5 million of the funding was used to buy out stakes held by early investors whose funds were nearing the end of their investment period. Following the deal, Yulu was reportedly valued at approximately $170 million.

Bajaj Auto and Magna International, among Yulu’s previous investors, did not participate in the round after waiving their preemptive rights, allowing GEF to acquire the stake it sought. Gupta said this would be the company’s final equity funding round before an initial public offering (IPO), with future fleet expansion expected to rely mainly on debt and leasing. The company also aims to achieve positive EBITDA in the current financial year and reach profitability before interest and taxes next year.

Quick-Commerce Demand and the New Yulu Express Model

Founded in 2017 as a bike-sharing service for urban commuters, Yulu found its core opportunity when demand for food and daily-goods deliveries surged during the COVID-19 pandemic. Today, about 95% of the company’s revenue comes from renting electric bikes to gig-economy workers through weekly subscriptions, while the remainder comes from its station-based rental service in Bengaluru. The startup ultimately abandoned plans to sell bikes directly to consumers.

To support its next phase of growth, Yulu is introducing Yulu Express, a full-size, high-speed electric scooter directly. The vehicle is designed for longer-distance e-commerce deliveries, moto-taxi services and express mail, including routes that the previous, slower fleet could not cover. About one-third of the planned 200,000 vehicles are expected to be this new model.