Magna Enters Micromobility Market, Announces $77 Million Investment in Yulu
Magna, a mobility technology company, is entering the rapidly growing micromobility space by investing $77 million in Yulu, India's largest electrified shared mobility provider, and creating a battery-swapping service company.
Yulu offers shareable, low-speed electric two-wheelers to make urban transit more accessible and sustainable in India. Magna will have a share in the company and a seat on Yulu's board of directors as part of the agreement. Furthermore, the two firms have formed a new battery swapping entity to facilitate the rapid growth in the electrification of mobility and the necessary infrastructure.
Matteo Del Sorbo, Executive Vice President, Magna International and Global Lead for Magna New Mobility, said:
"This is an incredibly exciting time for Magna to contribute to a sustainable future in urban mobility through this investment in Yulu. 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's design, engineering, and production capabilities are a welcome addition to the newly formed company, Yulu Energy. Magna will supervise the future construction of the infrastructure required for millions of swaps per week and serve as the exclusive battery-swapping provider for Yulu's customers. Magna has a strong track record of operating in high-volume production globally.
Yulu's strong market position and network in India, as well as its software competence, are leveraged in this new Battery-as-a-Service (BaaS) business. Currently, the company has 10,000 electric two-wheelers in service and operations in Bangalore, Delhi, and Mumbai. Yulu plans to expand to 15 new cities in the next 18 months, with the possibility of expanding 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 nearly 200 employees and is based in Bangalore, India. Magna's entry into one of the fastest growing markets for electric two-wheel mobility platforms coincides with its core capabilities and Go-Forward strategy to expand in the Mobility-as-a-Service (MaaS) and Battery-as-a-Service (BaaS) businesses.
Source: Globe Newswire