India’s fast-growing quick-commerce and delivery economy is creating a powerful new demand driver for electric mobility, and Bengaluru-based electric vehicle startup Yulu is moving to capitalize on the opportunity with a fresh $93 million funding round.
The company, which provides electric two-wheelers through weekly subscription plans for gig workers, has secured $63 million in equity and $30 million in debt financing in its Series C round. The equity investment was led by GEF Capital Partners, while the debt component will support the company’s plans to expand its fleet and strengthen its mobility infrastructure.
Yulu currently operates a fleet of around 50,000 electric vehicles, covering approximately 1.6 million zero-emission miles every week and supporting more than 750,000 deliveries each day. With the latest capital, the company plans to quadruple its fleet to approximately 200,000 vehicles over the next two years.
The funding comes at a time when India’s delivery ecosystem is expanding rapidly. Quick-commerce companies, food-delivery services and e-commerce platforms are increasingly dependent on large networks of delivery riders, creating demand for affordable, reliable and efficient two-wheelers that can keep operating costs under control.
Building Mobility for the Gig Economy
Yulu’s business model is built around removing one of the biggest barriers faced by delivery workers: the upfront cost of owning a vehicle.
Instead of purchasing an electric two-wheeler, gig workers can access Yulu vehicles through weekly subscription plans and use them for delivery work. This approach allows riders to enter or expand their participation in the gig economy without taking on the financial burden of vehicle ownership.
The company says roughly 95% of its revenue now comes from renting electric bikes to gig workers, while the remaining revenue is generated through its station-based rental business in Bengaluru.
Yulu has also moved away from an earlier strategy of selling electric bikes directly to consumers, choosing instead to focus on mobility-as-a-service and the growing commercial demand for electric vehicles.
The company currently operates across 12 Indian cities. It runs its own operations in Bengaluru, Mumbai, Delhi-NCR and Hyderabad, while working with franchise partners in eight additional markets.
Its next expansion phase is expected to take Yulu to around 20 cities within the coming year, with Chennai and Pune among the markets being targeted.
A New Electric Scooter for Longer Deliveries
Alongside fleet expansion, Yulu is broadening its vehicle portfolio to address delivery applications that require greater speed and range.
The company is introducing Yulu Express, a full-sized, higher-speed electric scooter designed for longer-distance e-commerce deliveries, bike-taxi services and express parcel transportation.
Around one-third of Yulu’s planned 200,000-vehicle fleet is expected to consist of the new model.
Approximately 500 Yulu Express vehicles are already operating in Bengaluru, with trials also underway in three additional cities. Unlike Yulu’s existing low-speed vehicles, which are manufactured by Bajaj Auto, the new high-speed model is being produced by another Indian manufacturer whose identity has not been publicly disclosed.
The introduction of Yulu Express marks a significant expansion in the company’s addressable market. While its existing vehicles have primarily served short-distance urban delivery requirements, the new scooter is intended to support use cases where speed and longer travel distances are more important.
From Bike Sharing to Delivery Infrastructure
Yulu began in 2017 as an urban bike-sharing company focused primarily on commuters. Its business trajectory changed significantly during the COVID-19 pandemic, when demand for food, grocery and essential deliveries surged and created a much larger opportunity in commercial electric mobility.
That shift has transformed Yulu from a consumer-oriented bike-sharing startup into a mobility infrastructure provider for India’s growing gig economy.
Today, the company works with nearly every major category of delivery platform, including quick-commerce, food-delivery and e-commerce businesses. Amazon and Walmart-owned Flipkart are among the platforms whose delivery ecosystems are supported by Yulu vehicles, although the startup’s direct customers are the gig workers who rent its vehicles rather than the delivery platforms themselves.
The company describes its position in the market as being similar to an “AWS of mobility”— providing the underlying transportation infrastructure that allows delivery workers to operate without requiring them to purchase and maintain their own vehicles.
Funding to Support a Larger, More Sustainable Fleet
The latest Series C investment also reflects Yulu’s broader financing strategy as it prepares for its next stage of growth.
Approximately $5.5 million of the equity component was used to purchase shares from seed-stage investors whose investment funds were approaching the end of their lifecycle. Existing investors Bajaj Auto and Magna International did not participate in the new round after waiving their pre-emptive rights, enabling GEF Capital Partners to achieve its targeted ownership position.
Yulu expects the latest round to be its final major equity fundraising before a potential public listing, with future fleet growth expected to rely increasingly on debt and lease financing rather than repeated equity raises.
The company has also reported significant financial progress. According to its leadership, Yulu achieved positive EBITDA in the previous financial year and is targeting profitability at the level of earnings before interest and taxes next year. Its revenue reportedly increased sevenfold between fiscal 2023 and fiscal 2026.
Electric Mobility Enters Its Next Growth Phase
Yulu’s latest funding highlights how India’s electric mobility market is evolving beyond private vehicle ownership and urban transportation.
As instant-commerce and same-day delivery models expand, the demand for commercially viable electric two-wheelers is likely to grow alongside them. For delivery workers, lower operating costs can directly influence earnings, while fleet operators can benefit from reduced dependence on conventional fuel-powered vehicles.
Yulu’s plan to increase its fleet from 50,000 to 200,000 vehicles therefore represents more than a simple expansion in vehicle numbers. It signals the company’s ambition to establish a much larger electric mobility network capable of supporting multiple segments of India’s logistics economy.
With new high-speed vehicles, expansion into additional cities and a financing strategy increasingly centered on debt and leasing, Yulu is positioning itself for a future in which electric two-wheelers become an essential part of India’s delivery and urban mobility infrastructure.
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