Yulu raises $93M to scale EV fleet for India's quick-commerce surge
The Bengaluru-based startup will expand its fleet to 200,000 vehicles and launch a high-speed scooter for long-haul logistics.
Bengaluru-based electric mobility startup Yulu has secured $93 million in a Series C funding round to aggressively expand its e-bike fleet. The investment arrives as the company capitalizes on the explosive growth of India's quick-commerce sector, where demand for ultra-fast delivery necessitates scalable electric vehicle (EV) infrastructure.
The funding package comprises $63 million in equity, led by GEF Capital Partners, and $30 million in debt. The deal values Yulu at approximately $170 million post-money. The company intends to grow its current fleet of roughly 50,000 bikes to 200,000 vehicles over the next two years. As part of this expansion, Yulu is introducing "Yulu Express," a full-sized, higher-speed electric scooter designed for bike taxis and longer-haul e-commerce logistics. These higher-speed models are expected to comprise about one-third of the future fleet.
The Pivot to Logistics
Founded in 2017, Yulu originally launched as an urban commuter bike-sharing service. The company shifted its strategy during the COVID-19 pandemic to focus on the delivery economy, a pivot that has proven highly lucrative. Yulu's revenue grew seven-fold between fiscal 2023 and fiscal 2026. Currently, the startup operates across 12 Indian cities and maintains partnerships with major platforms including Amazon and Flipkart. Rather than contracting with the platforms themselves, Yulu rents vehicles directly to gig workers via weekly subscriptions, which now account for 95% of the company's revenue.
Scaling the Last Mile
This expansion reflects a broader trend in the Indian market where the demand for near-instant delivery of groceries and electronics creates a critical bottleneck in last-mile logistics. By providing a ready-made fleet of EVs, Yulu aims to decouple the delivery workforce from the financial burden of vehicle ownership. Co-founder and CEO Amit Gupta has described the company's ambition as becoming the "AWS of mobility," providing the essential infrastructure that allows the delivery ecosystem to scale without requiring individual drivers to invest in their own hardware.
Future Outlook
As Yulu scales toward its 200,000-vehicle goal, the success of the Yulu Express will indicate whether the company can move beyond short-distance hops into more versatile logistics and ride-hailing. The company's ability to maintain rapid revenue growth while managing a significantly larger physical asset base will determine if it can standardize the mobility layer for India's gig economy. Observers will be watching to see if this direct-to-driver rental model can sustain its margins as competition in the EV rental space intensifies.