Yulu Raises $93 Mn to Quadruple Fleet, Targets Profit Next Year

Electric rental bike startup Yulu has raised $93 million in a mix of equity and debt funding to expand its fleet, enter new cities and work toward net profit next year, as per reports.

Yulu, founded in 2017 and backed by Bajaj Auto, plans to quadruple its active fleet to 200,000 two-wheelers from the current 50,000 over the next two years. The company also aims to expand its presence to about 20 cities from 12 within the next 12 months, through a mix of company-run operations and franchise partnerships, according to Reuters.

Currently, Yulu runs its own operations in Bengaluru, Mumbai, Delhi-NCR and Hyderabad, while working with franchisees in eight other cities. Chennai and Pune are among the key markets targeted for expansion, CEO and co-founder Amit Gupta told TechCrunch.

Yulu is also entering intra-city mobility with a new high-payload electric scooter called Yulu Express, aimed at e-commerce logistics, bike taxis and express parcel delivery. The company's existing fleet largely comprises low-speed vehicles used for quick commerce and food delivery.

About a third of the planned 200,000-vehicle fleet will consist of the new model, Gupta said. While Yulu's current low-speed fleet is manufactured by Bajaj Auto, the new scooter comes from a different Indian manufacturer that Gupta did not name. Around 500 units are already operational in Bengaluru and are being trialled in three other cities.

Funding and Financials

GEF Capital Partners, a climate-focused investment firm, led the $63 million equity portion of the fundraise. Existing investors Bajaj Auto and Magna International did not participate in the round, having waived their pre-emptive rights to allow GEF to acquire its target stake, Gupta said. The deal valued Yulu at about $170 million post-money, according to TechCrunch.

Gupta said this is expected to be the startup's final equity fundraise before an eventual public listing, with future fleet expansion to be financed mainly through debt and lease financing.

Yulu has been operationally profitable since April last year and no longer needs equity capital for daily operations, Gupta told Reuters. Its main funding requirement now is fleet expansion, he said.

The company nearly doubled its revenue in the financial year ended March 31, 2025, to ₹237 crore ($24.84 million), while narrowing losses by 12% to ₹126 crore. Yulu is targeting annualised revenue of ₹1,200-1,500 crore and aims to turn profit after tax (PAT) positive before pursuing a public listing.

Yulu started as a bike-sharing service for urban commuters in 2017 and found its biggest growth opportunity during the COVID-19 pandemic, as demand for food and grocery deliveries surged. About 95% of its revenue currently comes from renting electric bikes to gig workers on weekly subscriptions, with the rest from its station-based rental service in Bengaluru. The company has dropped an earlier plan to sell bikes directly to consumers.