Magna investing in $77M in Yulu and establishes battery-swapping business

AURORA — Mobility technology company Magna has invested $77 million in Yulu, India’s largest electrified shared mobility provider. The company also announced plans to create 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 growth in the 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.”

The new entity is currently registered as “Yulu Energy.”  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 entity leverages Yulu’s market position and network in India as well as its software experience. The company has approximately 10,000 electric powered two-wheelers in service and operations in Bangalore, Delhi, and Mumbai.

Yulu will target an additional 15 cities in the next 18 months, with potential to expand beyond India.

“We can clearly see a significant growth opportunity for Yulu in both the BaaS and MaaS businesses in the next three to four years,” said Amit Gupta, co-founder & CEO, Yulu, in a statement.

Yulu Energy has approximately 200 employees and it is headquartered in Bangalore, India.