Yulu Raises ₹25 Crore from Magna International in Series B3 CCPS Rights Issue

Electric‑mobility startup Yulu has raised ₹25 crore through a rights issue of Series B3 compulsorily convertible preference shares (CCPS), a filing with India’s Ministry of Corporate Affairs shows, Inc42 reported.

The company had initially secured board approval on 17 June to allot up to ₹70 crore to its co‑founders and existing investors, but elected to close the tranche at ₹25 crore, with Magna International subscribing ₹25 crore via 1,826 CCPS at a price of ₹1,41,226.30 per share.

Under the June board resolution, Yulu had planned to issue 5,004 CCPS at the same price point to its founders, Amit Gupta, Hemant Gupta, Naveen Dachuri and Rajendra Kumar Mishra, and strategic backers Bajaj Auto and Magna International.

Of that allotment, Amit Gupta was slated to invest ₹28.2 crore, while his three co‑founders each committed ₹14.1 crore. Bajaj Auto and Magna International were each allocated shares worth ₹2.8 lakh, though the final conversion price will be linked to Yulu’s forthcoming Series C round, according to a company spokesperson.

Yulu’s last valuation stood at USD 210 million when it raised USD 19 million from Bajaj Auto and Magna International in February 2024. The Bengaluru‑based firm is now targeting a USD 100 million Series C raise later this year to fund its next phase of growth, which the spokesperson said will be supported by recent operational efficiencies, higher user density and improved cost structures.

Yulu reported positive EBITDA in several months of FY25 and has remained profitable since the start of FY26.

Founded in 2017, Yulu pioneered electric scooters tailored for gig‑economy delivery workers, launching its DeX model with a licence‑exempt classification, a 60 kilometre range per charge and built‑in features such as a goods carrier and phone holder.

The company claims these design choices help riders reduce operating costs by as much as 40 percent. In FY24, Yulu’s operating revenue grew 2.6 times to ₹122.7 crore, up from ₹46.5 crore the previous year, even as net losses widened by 50 percent to ₹142.8 crore, reflecting heavy investment in fleet expansion and infrastructure.

Yulu faces intensifying competition in the gig‑EV segment, where Baaz Bikes offers battery‑swap leasing models, and incumbents such as Zypp Electric and Bounce are scaling their scooter fleets.

Last November, Ola Electric unveiled its Gig series of e‑scooters for delivery workers, although deliveries have yet to commence.

As demand for sustainable, cost‑effective mobility solutions grows among quick‑commerce platforms, Yulu’s latest funding underscores both investor confidence and the startup’s resolve to consolidate its leadership in India’s burgeoning gig‑EV market.