Mobility technology company Magna is expanding into the fast-growing micromobility market by investing $77 million in Yulu, India’s largest electrified shared mobility provider, and creating a battery-swapping service company.
Yulu deploys shareable, low-speed, electric two-wheelers to facilitate accessible, sustainable urban mobility in India. As part of the agreement, Magna will have a stake in the company and will hold a seat on Yulu’s board of directors. In addition, the two companies have established a new battery swapping entity to support the rapid growth in electrification of mobility and required infrastructure.
“This is an incredibly exciting time for Magna to contribute to a sustainable future in urban mobility through this investment in Yulu,” said Matteo Del Sorbo, Executive Vice President, Magna International and Global Lead for Magna New Mobility. “Micromobility presents a great opportunity for additional growth for Magna, and joining forces with Yulu helps us expand our business into this rapidly growing sector.”
Magna brings extensive capabilities in design, engineering and manufacturing to this new entity, currently registered as “Yulu Energy”. With its proven track record of operating in high volume production globally, Magna will serve as the exclusive battery-swapping provider for Yulu’s customers and manage the future buildup of the infrastructure required for millions of swaps per week.
This new Battery-as-a-Service (BaaS) entity leverages Yulu’s strong market position and network in India as well as its software expertise. The company currently has approximately 10,000 electric powered two-wheelers in service and operations in Bangalore, Delhi, and Mumbai. Yulu is targeting an additional 15 cities in the next 18 months, with potential to expand beyond India in the future.
Amit Gupta, Co-founder & CEO, Yulu said, “We can clearly see a significant growth opportunity for Yulu in both the BaaS and MaaS businesses in the next three to four years. As the market leader in electric mobility, with a proven business model built on positive unit economics, our focus now will be to establish a robust and agile supply chain and scale-up our operations. We will go deeper and denser in our existing markets and explore new areas while delivering a great customer experience. We welcome Magna onboard with our shared vision to create a sustainable and scalable EV ecosystem in India and beyond.”
Yulu Energy has approximately 200 employees and it is headquartered in Bangalore, India.
Magna’s entry into one of the fastest growing markets for an electrified two-wheel mobility platform aligns with its core competencies and Go-Forward strategy to expand in Mobility-as-a-Service (MaaS) and Battery-as-a-Service (BaaS) businesses.