India’s prominent shared electric mobility startup, Yulu, has successfully raised ₹25 crore (approximately $3 million USD) through a rights issue. The funding, structured as Compulsorily Convertible Preference Shares (CCPS), saw existing investor Magna International Inc. (Canada) allotted the shares after certain shareholders waived their rights, allowing Magna to subscribe to the unsubscribed portion.
This equity infusion is strategically aimed at maintaining optimal cash reserves and supporting Yulu’s ambitious expansion plans. The pricing disclosed in regulatory filings with the Ministry of Corporate Affairs (MCA) aligns with Yulu’s previous fundraise, with the final conversion price for the CCPS set to be linked to the company’s anticipated Series C funding round. Yulu remains firmly on track to raise a total of $100 million through a combination of equity and debt to power its next phase of growth.
A Yulu spokesperson stated, “Yulu has secured USD 3 million (₹25 crores) in funding through a rights issue from existing investors. This equity infusion, structured as Compulsorily Convertible Preference Shares (CCPS), helps maintain Yulu’s cash reserves at optimal levels. The pricing disclosed in the MCA filing aligns with that of Yulu’s previous fundraise, though the final conversion price will be linked to the company’s upcoming Series C round. Yulu remains on course to raise USD 100 million in a mix of equity and debt to power its next phase of growth.”
The recently secured funds will play a crucial role in enabling Yulu to further enhance the scalability, accessibility, and efficiency of its services, benefiting both daily commuters and vital gig economy delivery partners.
Founded in 2017, Yulu has established a significant presence, operating shared electric two-wheelers across major Indian cities including Bengaluru, Mumbai, Delhi NCR, and Hyderabad. The company collaborates closely with city governments, traffic authorities, and leading delivery brands to build a reliable, technologically advanced, and sustainable urban transport network.
Highlighting its strong financial performance, the Yulu spokesperson added, “With operational and scale-related efficiencies kicking in from product innovation, higher user density, and improved cost structures, Yulu turned EBITDA positive for a few months in the previous financial year, and has been consistently profitable since the start of the current fiscal. Its growth momentum and strong product-market fit for quick commerce and hyper-local logistics will drive further margin expansion for the company going forward.”
This latest rights issue significantly strengthens Yulu’s capital position, reinforcing its leadership in India’s rapidly expanding hyperlocal e-commerce and quick-commerce delivery segments.
