Yulu Secures $93 Million to Expand Electric Bike Fleet Amid Quick-Commerce Surge

Washington DC, United States Aug 12, 2026 ALN: As India’s quick-commerce platforms race to deliver everything from groceries to smartphones in minutes, electric mobility startup Yulu has seized the boom, raising $93 million in fresh funding.

The Bengaluru‑based startup offers electric two‑wheelers on weekly subscription plans, allowing delivery drivers to enter the gig economy without the burden of purchasing their own vehicles. With around 50,000 vehicles in its fleet, Yulu reports that it logs about 1.6 million zero‑emission miles each week and powers more than 750,000 deliveries a day. The new funding will enable Yulu to expand its fleet to 200,000 bikes over the next two years and launch faster electric two-wheelers aimed at new logistics use cases.

The Series C funding round consisted of $63 million in equity led by GEF Capital Partners and $30 million in debt financing. Approximately $5.5 million of the equity component was allocated to buy shares from seed investors whose funds were nearing the end of their investment life, as co-founder and CEO Amit Gupta explained in an interview. This strategic move not only stabilizes Yulu's investor base but also positions the company for future growth.

The deal has reportedly valued Yulu at about $170 million post-money, although Gupta declined to comment on the valuation directly. Existing investors, including Bajaj Auto and Magna International, did not participate in this round after waiving their pre-emptive rights, which allowed GEF to acquire its targeted ownership stake. Gupta expressed optimism that this would be Yulu’s final equity fundraising before an eventual public listing, suggesting a strong confidence in the company's trajectory and future financial health.

The startup is on track to achieve profitability before interest and taxes next year, following a positive EBITDA reported in the last financial year. Gupta indicated that Yulu’s revenue has grown seven-fold between fiscal 2023 and fiscal 2026, although he did not disclose specific figures. This impressive growth reflects the increasing demand for electric mobility solutions in urban areas, particularly as consumers and businesses seek sustainable alternatives.

The COVID Shift

Founded in 2017 as a bike-sharing initiative aimed at urban commuters, Yulu discovered its most significant opportunity during the COVID-19 pandemic, which accelerated the demand for food and grocery deliveries. This shift in consumer behavior not only expanded the market for delivery services but also highlighted the need for efficient and environmentally friendly transportation solutions.

Currently, Gupta noted that about 95% of Yulu’s revenue is derived from renting electric bikes to gig workers on weekly subscriptions, while the remainder comes from its station-based rental service in Bengaluru. The startup has pivoted away from its earlier strategy of selling bikes directly to consumers, focusing instead on providing mobility solutions tailored to the needs of gig workers.

To fuel its next growth phase, Yulu is introducing a full-sized, higher-speed electric scooter called Yulu Express. This new model is specifically designed for longer-haul e-commerce deliveries, bike taxis, and express parcel services — sectors that its slower fleet could not adequately serve. Gupta mentioned that about a third of the planned 200,000-vehicle fleet will consist of this new model, indicating a strategic shift towards meeting the evolving demands of the logistics sector.

While Yulu’s current low-speed fleet is manufactured by Bajaj Auto, the new high-speed scooter will be sourced from a different Indian manufacturer, which Gupta chose not to disclose. Approximately 500 units of the Yulu Express are already operational in Bengaluru and are currently being trialed in three additional cities, showcasing Yulu's commitment to innovation and adaptability in a competitive market.

Presently, Yulu operates in 12 Indian cities, managing its own operations in major urban centers such as Bengaluru, Mumbai, Delhi-NCR, and Hyderabad, while partnering with franchisees in eight other locations. Gupta expressed ambitions to expand Yulu's reach to roughly 20 cities within the next year, with Chennai and Pune identified as key targets for this expansion. This growth strategy is crucial for capitalizing on the burgeoning demand for quick-commerce and sustainable transportation solutions.

Yulu has established partnerships with nearly every major quick-commerce, food-delivery, and e-commerce platform, including industry giants like Amazon and Walmart-owned Flipkart. However, Gupta clarified that Yulu's primary customers are the gig workers who rent the bikes, not the platforms themselves. He likened Yulu’s role to that of “the AWS of mobility,” providing the essential infrastructure that enables delivery workers to operate independently, without relying on third-party logistics providers that often take a significant cut of earnings.

The implications of Yulu's growth extend beyond just the company itself; they reflect a broader trend towards electric mobility solutions in urban India. As cities grapple with pollution and traffic congestion, the adoption of electric two-wheelers can contribute significantly to reducing carbon emissions and promoting sustainable urban transport. Furthermore, the gig economy continues to expand, and companies like Yulu are positioning themselves as vital enablers of this shift, providing necessary tools and resources for workers in this evolving landscape.

In conclusion, Yulu's recent funding round and strategic growth initiatives underscore its commitment to becoming a leader in the electric mobility space in India. As the demand for quick-commerce solutions continues to rise, Yulu's innovative approach and focus on sustainability place it at the forefront of this transformative industry. The company's future expansion plans, coupled with its introduction of higher-speed electric scooters, are likely to enhance its competitive edge and solidify its position as a key player in the electric vehicle market.