Yulu surpasses $30 million ARR on rising demand from quick commerce

Amit Gupta Co-Founder and CEO Yulu -

Shared electric vehicle mobility firm Yulu’s annual recurring revenue (ARR) crossed $30 million in 2024 and it turned Ebitda positive on growing demand from the quick commerce segment, the Bengaluru-based startup said on October 7.

"It's a big milestone for Yulu because getting profitable is almost like a dream of every company... In the last 9-12 months, we actually have been able to see a tremendous growth in that sector and we were able to see a very good product market fit for Yulu," cofounder and chief executive officer (CEO) Amit Gupta told Moneycontrol.

Yulu does not offer fleet services but enables drivers and gig workers to rent its two-wheeler scooters. The firm service drivers across platforms like Zomato's Blinkit, Zepto, Swiggy and Big Basket.

"Our business model is B2C and will continue to be. Delivery partners from across platforms choose our vehicle for its cost-effective and sustainable benefits," Gupta said.

The company’s shared EV products include the Yulu Miracle and Yulu DeX. In 2023, it also launched its first electric two-wheeler for personal ownership, the Wynn.

Its vehicles offer a quick commute solution within a safe speed limit and don’t require riders to have a driving licence.

The firm has around 40,000 vehicles on-road, which includes its rental scooters available for last-mile travel.

"We are looking to more than double our on-ground presence to 100,000 EVs by 2025," Gupta said.

Also Read: Yulu developing e-scooter for individual buyers, says Co-founder & CEO Amit Gupta

Doubling down on Yulu Dex

While the company will continue to have its last-mile rental bikes for individual consumers for last-mile connectivity, Yulu is betting big on its offerings for goods transportation services.

The company has around 5,000 bikes available for shared mobility for individuals and will look at adding about 1,000 more a month by the end of this year.

The focus, however, has shifted to servicing the growing demand among gig workers and quick commerce delivery personnel, Gupta said. “We will add about 4,000-5,000 EVs per month. This has been growing tremendously for us and we will continue to invest in this segment," he added.

The firm is also seeing an increase in demand from Tier-2 cities and would expand to newer cities such as Ghaziabad and Faridabad. In non-metro cities, Yulu operates through its franchise partners.

"When it started, it was very Bangalore and Bombay and Delhi phenomena. And now we are seeing tens of thousands of pin codes being served on e-commerce and quick commerce," Gupta said. The company recently entered Hyderabad, is there across Delhi and would also “launch in one of the major top cities in the coming days”.

Yulu was founded in 2017 by Gupta, RK Misra, Naveen Dachuri, and Anuj Tewari. It provides its urban mobility-as-a-service (MaaS) offering in Bengaluru, Mumbai, Navi Mumbai, Delhi, Gurugram, Noida and Hyderabad.

Funding plans

Yulu has raised $123 million, so far. Of this, a sizeable chunk came from the $82-million Series B funding round led by Magna International Inc in September 2022.

The $123 million also includes $52 million for Yuma — from investors including Bajaj Auto, Magna International, Blume Ventures, 3one4 capital, Wavemaker, Incubate Fund, Rocketship.vc, and other institutional and angel investors.

In February of this year, the firm said it has secured USD 19.25-million (Rs 160 crore) in equity funding through the issuance of shares to the existing strategic investors Magna and Bajaj Auto Ltd.

The firm, which is eyeing a public offer over the next two or three days, is looking to raise around $100 million in a “pre-IPO” round.

"We are now doubling down on deploying around 100,000 EVs by 2025. To finance this expansion, the company will raise $100 million in Series C debt and equity funding over the next 12 months. This will be more like a pre-IPO round for Yulu," Gupta added.