Bengaluru: Bengaluru-based electric vehicle startup Yulu has raised Rs 653 crore in a Series B funding round led by a mobility technology company magna International. Magna’s stake in the company has not been disclosed, but she will hold a seat on the board. Magna, based in Canada, is one of the largest automotive engineering and component companies in the world.
Yulu forms a new entity, Yulu Energy, with Magna to create a nationwide battery charging and swapping infrastructure to serve Yulu’s demand as well as vehicles made by other manufacturers. “This infrastructure is expected to reduce the initial cost of purchasing electric vehicles and accelerate the adoption of electric mobility in India,” the company said in a statement. Yulu plans to use the funds to increase its fleet to 1 lakh bikes within a year. These bikes will be rolled out to existing hubs – Benglauru, Delhi and Mumbai.
The company’s co-founder, Amit Gupta told TOI that they plan to have 1 million vehicles in the next five years.
However, the focus will be on increasing the number of vehicles for delivery executives. Of the one lakh bikes that Yulu will induct, 60% will be Yulu Dex, which the company introduced in 2021 for delivery managers, Gupta said. “We initially thought they would only be 10-15% of the business, but we found that 60% of the business came from delivery executives. Now we will get more Dex and hold the prices down so that what they use these bicycles, while office workers and those who go to (metro) stations can use Miracle Yulu“, said Gupta.
The differential pricing of the two brands will ensure delivery managers prioritize Yulu Dex over Yulu Miracle.
“While they have to pay Rs 200 for 70-80 km on Dex, Miracle users will pay Rs 2 per minute,” Gupta added. The company plans to launch its vehicle for sale only after setting up 500 to 600 battery swapping stations. The company also plans to start operations in Hyderabad, Chennai and Kolkata.
Yulu forms a new entity, Yulu Energy, with Magna to create a nationwide battery charging and swapping infrastructure to serve Yulu’s demand as well as vehicles made by other manufacturers. “This infrastructure is expected to reduce the initial cost of purchasing electric vehicles and accelerate the adoption of electric mobility in India,” the company said in a statement. Yulu plans to use the funds to increase its fleet to 1 lakh bikes within a year. These bikes will be rolled out to existing hubs – Benglauru, Delhi and Mumbai.
The company’s co-founder, Amit Gupta told TOI that they plan to have 1 million vehicles in the next five years.
However, the focus will be on increasing the number of vehicles for delivery executives. Of the one lakh bikes that Yulu will induct, 60% will be Yulu Dex, which the company introduced in 2021 for delivery managers, Gupta said. “We initially thought they would only be 10-15% of the business, but we found that 60% of the business came from delivery executives. Now we will get more Dex and hold the prices down so that what they use these bicycles, while office workers and those who go to (metro) stations can use Miracle Yulu“, said Gupta.
The differential pricing of the two brands will ensure delivery managers prioritize Yulu Dex over Yulu Miracle.
“While they have to pay Rs 200 for 70-80 km on Dex, Miracle users will pay Rs 2 per minute,” Gupta added. The company plans to launch its vehicle for sale only after setting up 500 to 600 battery swapping stations. The company also plans to start operations in Hyderabad, Chennai and Kolkata.
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