Yulu Raises $93 Million, Targets 2 Lakh Active EVs as It Accelerates India Expansion

Bajaj Auto-backed electric mobility platform Yulu has raised $93 million in fresh capital as it prepares for its biggest expansion yet, targeting a fourfold increase in its active electric vehicle fleet to 2 lakh units over the next two years.

The Bengaluru-based company plans to deploy the capital towards expanding its EV fleet, entering additional cities, strengthening its service infrastructure and widening its presence beyond its traditional low-speed delivery vehicles.

The latest fundraise comprises $63 million in equity and $30 million in debt, with the equity component led by climate-focused investment firm GEF Capital Partners.

Rather than merely adding more vehicles to its existing network, however, Yulu's next phase appears to represent a significant expansion of its business model — from predominantly hyperlocal delivery mobility to a wider commercial electric two-wheeler ecosystem.

Yulu has raised $93 million and plans to increase its active fleet from around 50,000 to 2 lakh electric two-wheelers over the next two years.

Active Fleet to Grow From 50,000 to 2 Lakh EVs

At the centre of Yulu's expansion strategy is a plan to increase its active fleet from around 50,000 electric two-wheelers currently to 2 lakh vehicles over the next two years.

That would effectively quadruple Yulu's operational fleet and make the company an increasingly significant participant in India's commercial electric two-wheeler ecosystem.

Demand for shared and leased electric two-wheelers has increased alongside the rapid expansion of quick-commerce, food delivery and e-commerce businesses in Indian cities.

For delivery riders operating for several hours every day, EVs can potentially offer a meaningful operating-cost advantage compared with conventional petrol-powered two-wheelers, making fleet electrification particularly attractive for high-utilisation applications.

Yulu has positioned itself around precisely this use case, offering vehicles alongside the supporting technology and energy infrastructure needed to keep them operating.

Expansion From 12 Cities to 20

Yulu is also planning to significantly widen its geographical footprint.

The company currently operates across 12 cities and intends to expand its presence to around 20 cities during the next 12 months. The new markets will be served through a combination of company-operated businesses and franchise-led operations.

Yulu has already experimented with the franchise approach. Its business-partner programme allows local entrepreneurs to operate Yulu fleets while accessing the company's vehicles, technology and operating ecosystem. Yulu's official partnership platform currently illustrates business models ranging from 150-bike fleets to deployments involving 2,000 vehicles.

The franchise model could become particularly important as Yulu moves beyond India's largest metros, where building an entirely company-owned operating network in every city could require significantly higher capital.

Yulu Express to Target Logistics and Bike Taxis

Arguably the more interesting development from an automotive perspective is Yulu's move into a new class of electric two-wheeler.

The company plans to introduce Yulu Express, described as a full-sized, high-payload electric scooter targeted at applications including:

• E-commerce logistics

• Express parcel delivery

• Bike taxis

• Intra-city commercial mobility

The upcoming scooter represents a noticeable shift from Yulu's existing fleet, which predominantly consists of low-speed electric vehicles used by quick-commerce and food-delivery riders.

Entering the full-size electric scooter segment could considerably widen Yulu's addressable market.

A vehicle engineered for higher payloads and broader commercial applications would allow Yulu to target logistics operations that require capabilities beyond short-distance grocery and food delivery.

It could also bring the company into closer competition with conventional electric scooter manufacturers as well as other fleet-focused EV companies.

From Micromobility to Commercial EV Platform

Yulu's evolution is particularly interesting because the company started primarily as an urban shared-mobility operator.

Founded in 2017, Yulu gradually shifted towards electric mobility and has since developed an ecosystem built around connected electric two-wheelers and battery swapping. Bajaj Auto is among its strategic investors.

Its current consumer-facing Yulu Wynn, for example, uses an app-based keyless system and a battery-subscription model. Yulu says users can replace depleted batteries through the Yuma battery-swapping network rather than relying solely on conventional charging.

For high-utilisation commercial vehicles, battery swapping can be particularly important because vehicle downtime directly affects a rider's earning potential.

Yulu's proposition therefore extends beyond simply supplying an electric scooter. The combination of vehicles, battery infrastructure, software and fleet-management capabilities gives it a potentially differentiated position within the commercial EV market.

Operationally Profitable Since April 2025

Yulu's expansion also comes as its financial profile improves.

CEO and co-founder Amit Gupta said the company has been operationally profitable since April 2025, meaning it no longer requires equity funding to finance its routine operations. New capital is instead primarily required to expand the vehicle fleet and business footprint.

Yulu's operating revenue nearly doubled to approximately ₹237 crore in FY2025, while its net loss declined by around 12% to approximately ₹126 crore.

The company has also said its revenue increased roughly sevenfold between FY2023 and FY2026.

Yulu is now targeting monthly profit-after-tax profitability during the next calendar year, while aiming for annualised revenue of approximately ₹1,200 crore to ₹1,500 crore as the business scales.

IPO Could Follow Once Yulu Turns Profitable

An eventual stock-market listing is also part of Yulu's longer-term roadmap.

The company wants to establish PAT profitability before pursuing an IPO, suggesting that the current expansion phase could be an important step towards creating the scale and financial performance required for a public-market debut.

Unlike several EV startups that have concentrated primarily on selling vehicles to individual consumers, Yulu's business depends heavily on utilisation and recurring mobility demand.

That makes the rapid growth of India's quick-commerce and logistics sectors an important factor in its future prospects.

India's Delivery Boom Is Creating a New EV Segment

India's electric two-wheeler market is generally discussed in terms of consumers switching from petrol scooters to EVs.

However, commercial mobility may emerge as an equally important electrification opportunity.

A personal scooter might travel only a few thousand kilometres annually, while a delivery vehicle can operate for several hours every day. Consequently, fuel and maintenance savings accumulate considerably faster for commercial operators.

That creates a compelling economic case for electrification, particularly when charging or swapping infrastructure is readily available.

Quick-commerce platforms have simultaneously increased the number of short-distance delivery journeys taking place within India's largest cities.

The result is creating demand for a distinct class of purpose-built electric vehicles designed around high utilisation, low running costs, payload capability, connectivity and minimal downtime.

Yulu's proposed 2 lakh-vehicle fleet provides an indication of how significant that market could become.

Auto Punditz Take

Yulu's $93 million fundraise matters, but the 2 lakh active EV target is the bigger automotive story.

Increasing the fleet fourfold would turn Yulu from a relatively specialised shared-mobility company into a sizeable commercial EV operator. More importantly, the introduction of the Yulu Express indicates that the company wants to address substantially more than low-speed grocery-delivery mobility.

India's quick-commerce boom is effectively creating a new two-wheeler category where range, top speed and styling are not necessarily the primary purchasing considerations. Cost per kilometre, vehicle uptime, battery turnaround, payload and fleet utilisation matter far more.

That could create opportunities not only for Yulu but also for established two-wheeler manufacturers, battery-swapping companies and EV startups developing vehicles specifically for fleet applications.

If Yulu succeeds in scaling from roughly 50,000 to 2 lakh active electric two-wheelers within two years, its expansion could become one of the clearest demonstrations yet that India's transition to electric two-wheelers may be driven as much by commercial economics as by private consumers.