Canadian auto parts manufacturer Magna on Monday said it is investing $77 million (around Rs 613 crore) in electric bike sharing platform Yulu and for setting up a battery swapping company.
As per the agreement, Magna will get a stake in the Bengaluru-based company along with a seat on its board of directors, Yulu said in a statement.
Yulu has around 10,000 low-speed electric two-wheelers on the roads of Bengaluru, Delhi, and Mumbai.
The company aims to reach 15 cities in the next 18 months, with a potential to expand beyond India in the future, as per the statement.
"Magna is expanding into the fast-growing micro-mobility market by investing $77 million in Yulu, and creating a battery-swapping service company," the statement said.
This deal aligns with Magna's go-forward strategy to expand in Mobility-as-a-Service (MaaS) and Battery-as-a-Service (BaaS) businesses.
Magna said, this investment brings extensive capabilities in design, engineering and manufacturing to the new entity, currently registered as 'Yulu Energy'.
'Micro-mobility presents a great opportunity for additional growth for Magna, and joining forces with Yulu helps us expand our business into this rapidly growing sector,' said Matteo Del Sorbo, Executive Vice President, Magna International and Global Lead for Magna New Mobility.
The setting up of the battery swapping entity will support the rapid growth in electric mobility and required infrastructure, said Magna.
The company 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, it said.
This new BaaS entity leverages Yulu's strong market position and network in India as well as its software expertise, according to the statement.
Yulu said it sees a significant growth opportunity in both BaaS and MaaS businesses in the next three to four years.
'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,” said Amit Gupta, Co-founder-CEO, Yulu.
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