Electric mobility startup Yulu is reportedly in advanced discussions with multiple investors and institutions to raise $75-80 million in a new round of funding, as the company looks to capitalise on the surging demand in quick commerce and hyperlocal delivery segments. This development, first reported by The Economic Times, comes as part of the startup’s ongoing $100 million Series C funding plan, announced in October 2024.
The funding round is expected to be a mix of debt and equity, according to Yulu, which is backed by Bajaj Auto Ltd. and Canadian auto parts giant Magna. The startup aims to significantly expand its fleet size and operational footprint to meet growing demand.
“In October 2024, we announced our plan to raise $100 million in Series C debt and equity funding over the coming 12 months. That plan remains on track. Yulu is in talks with several investors and institutions (in India and abroad), many of whom have expressed keen interest in being a part of our growth story,” a Yulu spokesperson told YourStory.
The company attributes this move to its strong product-market fit for the quick commerce sector and its success in last-mile delivery services. With the rise of hyperlocal deliveries driven by e-commerce and quick commerce players, Yulu sees a significant opportunity to position itself as the go-to electric mobility provider for sustainable last-mile logistics.
Yulu had earlier raised $82 million in its Series B round in 2022 from Bajaj Auto Ltd. and Magna. This was followed by an additional $9.1 million in debt funding from the US International Development Finance Corporation (DFC). In February 2024, Yulu also secured $19.25 million as part of its extended Series B round, again led by Bajaj Auto Ltd. and Magna.
The current round is expected to see continued participation from its existing investors. According to sources, Bajaj Auto Ltd. and Magna remain bullish on Yulu’s long-term potential and are expected to play a key role in the company’s next phase of growth.
As India’s electric mobility space continues to evolve rapidly, Yulu is betting big on its innovative solutions tailored for dense urban environments and short-distance deliveries. The fresh capital will help it strengthen its technology infrastructure, increase EV availability across Tier 1 and Tier 2 cities, and build a more robust operational network to support its ambitious expansion goals.