Yulu Bikes, the electric mobility startup, has secured a substantial INR 25 crore in debt funding from Chennai-based non-banking financial company Northern Arc Capital. The move comes hot on the heels of Yulu’s impressive Series B funding round in September 2022, where the company raised a substantial $82 million in equity funding led by US-based Magna International.
Documents obtained from the Registrar of Companies reveal that Yulu’s board has passed a special resolution, greenlighting the issuance of 250 non-convertible debentures at an issue price of INR 1,00,000 each, cumulatively raising INR 25 crore. This latest financial maneuver aims to fortify Yulu’s position in the competitive electric mobility sector, where last-mile connectivity solutions are gaining prominence.
Yulu Bikes, renowned for providing last-mile connectivity through its fleet of electric bikes and an extensive network of EV charging and battery swapping stations, operates under the umbrella of Urban Mobility-as-a-Service (MaaS). The company’s services are currently operational in key metropolitan areas, including Bengaluru, Mumbai, and Delhi-NCR.
A notable achievement for Yulu is its joint venture with Canadian automotive supplier Magna, known as Yuma. This collaboration has facilitated over 6.5 million battery swaps to date, showcasing the scalability and efficiency of Yulu’s electric mobility solutions.
Strategic partnerships have been pivotal to Yulu’s growth strategy, with a longstanding collaboration with India’s leading two-wheeler manufacturer, Bajaj Auto. This partnership extends across various facets, including product design, technology platforms, engineering processes, and manufacturing. The synergies between Yulu and Bajaj Auto have played a crucial role in bolstering Yulu’s market presence.
Yulu’s financial performance underscores a positive trajectory, with the company reporting INR 41.74 crore in revenue from operations in the fiscal year 2023. This marks a significant turnaround from the previous fiscal year, where Yulu incurred a loss of INR 94.88 crore. The improved financial performance reflects Yulu’s adept execution of its business model and its ability to meet the growing demand for sustainable urban mobility solutions.
The recent debt infusion from Northern Arc Capital is expected to further fuel Yulu’s growth ambitions. The funds are likely to be channeled towards expanding the electric bike fleet, enhancing charging infrastructure, and exploring new geographic markets. This strategic move positions Yulu favorably to capitalize on the increasing investor confidence in the electric mobility sector, especially in the context of last-mile connectivity solutions.
The successful Series B funding, coupled with the recent debt infusion, solidifies Yulu’s financial foundation and provides the momentum needed to scale operations. The company’s commitment to technology-driven solutions and sustainability positions it as a key player in the evolving landscape of urban mobility.
As Yulu continues to navigate the dynamic and competitive electric mobility sector, the infusion of funds becomes instrumental in realizing the company’s vision of providing accessible, affordable, and sustainable last-mile connectivity solutions. Yulu’s intersection of technology, strategic partnerships, and financial backing establishes it as a trailblazer in reshaping the future of urban mobility.
