Electric Two-Wheeler Startup Yulu Eyes to Garner $100 Million to Extend its Business Model & Market
Yulu, which has built the country's largest battery-as-a-service network with 3 million battery swaps to date, plans to increase its fleet to 100,000 units by the end of the year from 10,000 units now, offer franchisee models to reach other cities, and cater to personal buyers in the coming year.
So far, the company has raised $30 million in stock.
To help expedite growth, it has set aside $100 million in a mix of equity and debt.
Yulu's founder and CEO, Amit Gupta, stated that the company expects to grow 10 times this year.
He said, “All the tailwinds lead it to usage - policies, the adoption, which is primarily led by the food delivery and grocery companies will drive the growth.”
Both new and existing investors will participate in the new investment round.
The majority of Gupta's fleet was constructed using internal funds, but the company now plans to do so using debt and lease finance because of its track record.
Yulu claims to be the country's largest shared electric mobility platform, with three million battery swaps to far. By the end of December, it hopes to have completed three million swaps every month due to the expansion of its fleet and the addition of new cities.
Yulu, according to Gupta, has a strong relationship with two-wheeler manufacturer Bajaj, which has helped the company shape its future strategy.
The business will also introduce a new line of electric two-wheelers, both for personal and last-mile mobility, with a fourth-generation battery based on a Bajaj Auto architecture.
All new Bajaj vehicles would be designed and constructed entirely in India, as opposed to the imported kits that were previously used.
In addition to Yulu Dex and Yulu Miracle, a third product, Yulu Express, is in the works for the e-commerce market, with a mid-speed capability to transport a larger payload. There's also one for individuals.
Gupta stated, “From overall look and feel it will be very different. It will be jazzier, personality and meat overall. Under the hood, it will be the same reliable set of motors, controllers and battery.”
It was founded in 2017 by Amit Gupta, Hemant Gupta, RK Misra, and Naveen Dachuri to provide a cleaner urban commute, and it has prominent investors such as Bajaj Auto, Blume, WaveMaker, 3One4, and Rocketship on board.
Yulu is using a cluster-based approach on pin codes to cater to high-demand areas rather than targeting entire cities.
It has created 3,000 Yulu zones, which will be expanded to 10,000 to 12,000 zones during the next year.
It offers urban Mobility-as-a-Service (uMaaS) in Bengaluru, Delhi-NCR, and Mumbai, with plans to extend to ten other metros and tier 1 cities.
According to Yulu, India has the highest potential market for micromobility, with only the top ten cities presenting a $26 billion economic opportunity.
In fact, the last-mile delivery market was worth $5.4 billion in 2021. Yulu expects the percentage of revenue from goods transportation to increase to 80% in the following year, up from 10% last year. This fiscal year, the company is expected to bring in $100 million in sales.
The use of electric vehicles is projected to accelerate as fuel prices and vehicle ownership costs rise. Yulu bikes are not only half the price of autorickshaws, but they are also half the speed of vehicles in traffic.
Yulu rides, according to the business, are 35 percent less expensive than gasoline-powered rivals and are also cleaner. So far, Yulu claims to have helped save over 10,000 metric tonnes of CO2.
According to Gupta, “Yulu's objective is to create the country's largest AI-powered, vertically integrated battery infrastructure for electric two-wheelers, making city mobility easy, shareable, and sustainable.”
Gupta stated that getting into last-mile, three–four-wheeled passenger vehicle mobility was an appealing space that the board had already studied, but that it was not on the board's immediate agenda.