Per the investment terms, Yulu will source electric two-wheelers from Bajaj. The vehicles will be co-designed and manufactured exclusively for shared micro-mobility. Besides, Bajaj will also consider facilitating the vehicle finance needs of Yulu for a large scale deployment of its micro-mobility electric vehicles, it said in a statement.
The deal talks between the two companies surfaced in June this year. According to earlier media reports, Yulu is looking to raise a total of $15-20 million in the ongoing funding round, and is also in talks to bring in other new investors.
“At BAL, we believe that the two factors of congestion reduction and pollution control will drive the segment of shared micro-mobility in the future. That coupled with the expansion of Mass Rapid Transport System like Metro in large cities will further boost the demand for flexible last-mile connectivity,” Rajiv Bajaj, managing director, Bajaj, said.
Yulu will use the fresh financing to further strengthen its mobility platform and to deepen the technology solutions for rapid expansion. It plans to increase its fleet size to 100,000 electric two-wheelers by December 2020 from 15,000 vehicles at present. The startup currently offers services in Bengaluru, New Delhi, Pune, Greater Mumbai, and Bhubaneswar.
Launched by former InMobi cofounder Amit Gupta, RK Mishra, Hemant Gupta, and Naveen Dachuri in 2017, Yulu started off as a bicycle-sharing startup. In February this year, it also expanded its offerings to include dockless, lithium-powered scooters it calls Yulu Miracle.
With this partnership, Yulu will consolidate its leadership position in the shared electric micro-mobility space and help accelerate the adoption of electric vehicles (EV) in India. Yulu is building an ecosystem of EV led micro-mobility and aims to expand it’s services to 8 mega cities and select smart cities under Smart Cities Mission, the statement added.
Amit Gupta, Co-Founder & CEO, Yulu, said, “Yulu’s electric two-wheelers will help Indian commuters with the first and the last mile connectivity option. This partnership aims to solve the mobility challenges of urban India in an eco-friendly manner.”
Yulu competes with the likes of Shunwei Capital-backed Rapido, Ola-backed Vogo, B Capital-backed Bounce, and Drivezy among others.
Last month, Rapido secured $55 million in a Series B round of financing from a group of investors including Shunwei Capital, a Chinese venture capital firm led by smartphone maker Xiaomi’s founder Lei Jun. Hedge fund Steadview Capital is reportedly in talks to lead a $50 million funding round in two-wheeler rental startup Vogo.
Bounce is also close to finalising a $100-million Series D funding round led by existing investors Accel Growth and B Capital, The Economic Times reported last month.