Electric mobility firm Yulu plans to expand its Bengaluru fleet to 35,000 vehicles by FY27. The company is leveraging high demand from quick commerce delivery partners to drive growth. Yulu has reported positive operating profits for most of the past fiscal year and is now seeking to raise $100 million for further expansion.
Yulu, an electric mobility platform, is focusing its growth strategy on the rapid expansion of its delivery-oriented fleet. The company has set a target to deploy between 30,000 and 35,000 electric vehicles in Bengaluru by the end of the 2027 fiscal year. This move comes as the company continues to see strong demand from gig economy workers in the quick commerce, food delivery, and home-services sectors.
Operational Growth and Fleet Dynamics
The company recently reached a significant milestone by surpassing 2 billion cumulative kilometers driven on its platform. Notably, the second billion kilometers were covered in just over a year, compared to the six years it took to reach the first billion, signaling a faster pace of operations. Currently, Yulu operates a total fleet of roughly 48,000 vehicles across ten cities, with Bengaluru serving as its largest hub with about 21,000 units.
By providing electric bikes to delivery partners associated with major platforms like Blinkit, Swiggy, Zepto, and others, Yulu has created a business model centered on daily rentals. This service includes maintenance, battery swapping, and insurance, which reduces the operational burden on delivery riders. Beyond delivery, the company is also growing its presence in the online home-services space, where its vehicles are used by professionals from Urban Company and similar platforms to increase their daily assignment capacity.
Financial Performance and Funding Plans
Yulu reported that it achieved earnings before interest, tax, depreciation, and amortization (EBITDA) profitability in eleven of the twelve months of the previous fiscal year. This improvement in financial health was driven by higher utilization of its fleet. Management expects revenue to rise significantly in the current fiscal year while keeping indirect costs relatively stable.
To fund its upcoming capital spending on fleet expansion, Yulu is planning to raise approximately $100 million through a mix of equity, debt, and lease financing. The company has already gained access to about $250 million in debt facilities to support its operations. While the company aims for growth, it has also made strategic trade-offs, such as pausing the broader rollout of its personal mobility scooters to direct resources toward its more profitable core fleet business. Additionally, Yulu is developing Yulu Express, a service featuring higher-speed vehicles intended for extended logistics and e-commerce deliveries.
Future Monitorables
Investors and stakeholders should track the company’s ability to maintain high fleet utilization rates as it increases its vehicle count. Because Yulu’s business model depends on the growth of the quick commerce sector, any shift in delivery demand or changes in gig-worker policies could affect future utilization. The company’s successful execution of its $100 million fundraising plan and the performance of its new Yulu Express vertical will be important to observe in the coming quarters.