EV Startups: Innovation and Disruption
Yulu, a Bengaluru-based electric mobility startup, is in advanced discussions to raise approximately $75–80 million in funding. This initiative aims to capitalize on the rapid growth of quick commerce and hyperlocal delivery sectors in India. The funding round is part of Yulu’s ongoing Series C plan, which was announced in October 2024 with a target of $100 million over 12 months.
Funding Structure and Investor Participation
The anticipated funding will be a mix of debt and equity. Yulu is engaging with global impact funds and private equity investors. Existing backers, including Bajaj Auto and Magna International, are expected to participate in the round.
Yulu’s co-founder and CEO, Amit Gupta, mentioned that the company is evaluating raising capital through a mix of debt and equity. While the $75–80 million will be infused into Yulu as primary capital, the company may consider some secondary deals if any incoming investors cannot meet the minimum shareholding requirements.
Financial Performance and Strategic Growth
Yulu has achieved an annual recurring revenue (ARR) of $30 million and reached EBITDA profitability in the previous fiscal year. The company plans to utilize the funds to expand its electric vehicle fleet, aiming to meet the increasing demand in the quick commerce sector. This includes enhancing its presence in Tier 1 and Tier 2 cities and strengthening its technology infrastructure.
Valuation Impact
The new funding round could potentially increase Yulu’s valuation by 20–25% from its last reported valuation of $210 million.
Yulu’s expansion aligns with the rapid growth of quick commerce in India, as consumers increasingly demand faster and more efficient delivery services. The company’s focus on sustainable electric mobility solutions positions it well to serve this evolving market.
Image Credit : businesstoday.in
