Bengaluru-based electric mobility company Yulu has successfully closed a Series C funding round, securing $93 million. This significant investment comprises $63 million in equity, led by GEF Capital Partners, and an additional $30 million in debt. The capital infusion is earmarked for an ambitious expansion strategy, aiming to increase Yulu's vehicle fleet fourfold and broaden its reach in urban logistics.
Strategic Growth and Financial Objectives
According to co-founder and CEO Amit Gupta, this latest fundraise is not intended to cover operational losses but rather to strengthen Yulu's balance sheet for its next phase of substantial growth. Gupta expressed a desire for this to be the company's final equity fundraise, with future capital expenditure needs to be met through debt and lease financing. Yulu has been EBITDA-positive since April 2025, and its immediate financial goal is to transition from EBITDA profitability to EBIT profitability, a move for which the fresh equity provides a crucial buffer.
Fleet Expansion and Market Focus
Yulu currently operates approximately 50,000 vehicles and plans to expand this cumulative fleet to 200,000 over the next two years. The company reported a sevenfold revenue increase between FY23 and FY26. Its fleet presently covers 2.5 million zero-emission kilometers daily and facilitates over 750,000 doorstep deliveries.
The expansion strategy is deeply rooted in the gig economy. Yulu's primary use case is quick commerce, followed by food commerce and what Gupta terms “quick service,” which encompasses hyperlocal services such as home care, salons, and spas. Rather than directly engaging consumers, Yulu positions itself as a mobility infrastructure provider, empowering gig workers to serve these businesses. Gupta likens this vision to becoming the “AWS of mobility,” focusing on supporting businesses and their gig-worker workforce.
Introducing Yulu Express and Local Manufacturing
Further bolstering its infrastructure play, Yulu is launching Yulu Express, a new mid-speed electric vehicle. Designed to reach speeds of up to 45 kmph and carry a payload of 70-80 kg, the Yulu Express will address use cases beyond the capabilities of its existing low-speed fleet, including longer-distance food deliveries, e-commerce logistics, express parcel services, and, where regulations permit, bike taxis.
Yulu emphasizes its commitment to local manufacturing, sourcing all its vehicles within India. Its popular low-speed models, Dex and Miracle, are manufactured by Bajaj Auto, while the new mid-speed vehicles are being sourced from two other Indian original equipment manufacturers (OEMs).
Shifting Focus and IPO Ambitions
Interestingly, Yulu is temporarily pausing its personal-mobility experiment, which involved directly selling vehicles to consumers. Gupta explained that scaling such a business would necessitate substantial investments in physical showrooms and service networks. Instead, the company will concentrate its capital and management resources on its core gig-worker mobility business.
The long-term goal for Yulu is a public market debut. Gupta stated that an IPO is “one of the inspirations” for the company, though he considers it too early to provide a specific timeline. He believes Yulu would become a credible IPO candidate once it achieves revenues of ₹1,000-1,200 crore, coupled with enhanced profitability and margin expansion. As per Tracxn, Yulu's FY25 revenue stood at ₹242 crore, with a loss of ₹126 crore. Gupta underscored the ambition: “We don’t want to list; we want to list as an important company.”