Yulu in Talks to Raise $80 Million to Expand Quick Commerce and Last-Mile Delivery Operations

In the dynamic landscape of India's urban mobility, Yulu, a Bengaluru-based electric mobility startup, is making significant strides. The company is reportedly in advanced discussions to raise $75–80 million as part of its ongoing $100 million Series C funding round, aimed at scaling its operations in the burgeoning quick commerce and last-mile delivery sectors .​

A Decisive Move Towards Expansion

Yulu's latest funding initiative underscores its commitment to addressing the escalating demand for efficient and sustainable delivery solutions in India's rapidly growing quick commerce market. The anticipated capital infusion, comprising both debt and equity, is expected to bolster Yulu's fleet expansion and technological advancements, positioning the company to meet the logistical challenges of hyperlocal deliveries.

Backed by industry stalwarts such as Bajaj Auto Ltd. and Canadian auto parts giant Magna International, Yulu's growth trajectory reflects a strategic alignment with the evolving needs of urban logistics. The company's focus on electric mobility solutions resonates with the global shift towards environmentally conscious transportation alternatives.​

Capitalizing on Quick Commerce Dynamics

The quick commerce sector in India is experiencing unprecedented growth, driven by consumer demand for rapid delivery of essentials. Yulu's electric two-wheelers have become integral to this ecosystem, facilitating swift and eco-friendly deliveries for major players like Zepto, Blinkit, and Swiggy. The company's vehicles are now responsible for a significant portion of deliveries from dark stores in metropolitan areas, highlighting Yulu's pivotal role in the supply chain .​

Yulu's strategic partnerships and technological innovations have enabled it to achieve near-total coverage of dark stores in its operational zones, with its electric vehicles accounting for up to 80% of deliveries in certain areas . This dominance not only showcases Yulu's operational efficiency but also its contribution to reducing carbon emissions and promoting sustainable urban living.​

Financial Milestones and Growth Trajectory

In October 2024, Yulu announced that it had achieved EBITDA profitability and surpassed an annual recurring revenue (ARR) of $30 million, marking a significant financial milestone for the company . This achievement is attributed to the company's robust business model, strategic partnerships, and the growing demand for electric mobility solutions in the delivery sector.​

The company's fleet has expanded to over 40,000 electric vehicles, with plans to double this number to 100,000 by 2025 . This ambitious expansion strategy is supported by Yulu's commitment to enhancing its battery-swapping infrastructure and leveraging artificial intelligence to optimize operations.​

Innovations and Future Outlook

Yulu's innovation extends beyond fleet expansion. The company is developing a mid-speed electric two-wheeler tailored for quick commerce deliveries, expected to launch by the end of 2024 . This new vehicle aims to address the specific needs of delivery personnel, offering higher payload capacity and improved performance for longer-distance deliveries.​

Additionally, Yulu's franchise model, the Yulu Business Partner (YBP) initiative, is facilitating the company's expansion into Tier-2 cities like Indore, Kochi, and Pondicherry . This approach not only broadens Yulu's market reach but also promotes entrepreneurship and job creation in emerging urban centers.​

Commitment to Sustainability and Social Impact

Yulu's mission transcends business growth; the company is deeply committed to environmental sustainability and social empowerment. By providing affordable and accessible electric mobility solutions, Yulu has improved the livelihoods of over 150,000 riders, including women, enabling them to participate in the gig economy and achieve financial independence .​

The company's operations have also contributed to significant environmental benefits, with riders collectively traveling over 700 million kilometers and saving more than 27 million kilograms of CO2 emissions to date . These achievements underscore Yulu's role in fostering a greener and more inclusive urban mobility landscape.

Conclusion

Yulu's strategic initiatives, technological innovations, and commitment to sustainability position it as a frontrunner in India's electric mobility sector. The company's efforts to raise $75–80 million in funding reflect its dedication to scaling operations and meeting the growing demands of quick commerce and last-mile delivery services. As Yulu continues to expand its footprint and enhance its offerings, it stands poised to redefine urban transportation and contribute significantly to India's sustainable development goals.

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