India's Yulu raises $93M to expand e-bike fleet to 200,000 as quick-commerce booms

Indian startup Yulu, which rents electric two-wheelers to couriers for express delivery services, has closed a $93 million funding round. The proceeds will go toward doubling its fleet from 50,000 vehicles to 200,000 within two years, as well as launching faster models for logistics.

The Series C round consisted of $63 million in equity led by GEF Capital Partners and $30 million in debt financing. About $5.5 million of the equity portion went to buying out stakes from early investors whose funds were nearing the end of their life cycle, co-founder and CEO Amit Gupta said. Sources valued Yulu at roughly $170 million post-money, though Gupta neither confirmed nor denied the figure.

Existing shareholders Bajaj Auto and Magna International waived their pre-emptive rights and sat out the round, allowing GEF to secure its target stake. Gupta also said the company expects this to be its final equity raise before a potential public listing, with future fleet expansion funded primarily through debt and lease financing.

Yulu aims to reach profitability before interest and taxes next year. The company achieved positive EBITDA last fiscal year, and revenue grew seven-fold between fiscal 2023 and fiscal 2026, though specific figures were not disclosed.

Founded in 2017 as a bike-sharing service for urban commuters, Yulu found its main niche during the COVID-19 pandemic when demand for food and grocery deliveries surged. Today, about 95% of revenue comes from weekly subscriptions for e-scooter rentals to gig workers, with the rest generated by station-based rentals in Bengaluru. The company has also abandoned earlier plans to sell scooters directly to consumers.

For its next growth phase, Yulu is preparing a full-sized, higher-speed electric scooter called Yulu Express, designed for longer trips. The current fleet covers about 1.6 million miles per week and powers more than 750,000 deliveries a day.