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Business News/ Markets / Stock Markets/  Yulu Bikes likely to file for IPO in FY26

Small-format, battery-operated cars are expected to create sufficient investor interest over the next few years, according to Yulu Bikes' chief executive, and the company may decide to file for an initial public offering (IPO) in FY26, said Economic Times (ET) in its media report.

With increasing traffic on the roads and the government's commitment to clean mobility, the Bengaluru-based startup, which has a strategic alliance with Bajaj Auto, sees demand for such tech-based vehicles growing, according to ET report.

The Amit Gupta-founded company is currently seeking to raise debt and equity in the short to medium term to fund its activities.

"Based on our projections - excluding the personal mobility business which we have recently got into--we are looking at achieving profitability in the current financial year. If we can stick to this for a couple of years, we will go to the capital markets in FY26," Gupta, co-founder and CEO of Yulu Bikes, told ET.

Recently, Yulu received $9 million from US Development Finance Corporation to support its growth objectives. Magna International, a manufacturer of automotive parts, led a $82 million Series B fundraising round that the company closed in September of last year.

The 'Miracle' bike from Yulu is in high demand in major cities like Mumbai since it operates on the principle of mobility as a service (personal users must pay 2/minute for rides), said ET in its report.

From 500 till a year ago, the number of low-speed "Miracle" bikes—which have a range of 80 km—currently in use in Mumbai has climbed by an astounding 11 times. According to Gupta, there has been similar growth in Bengaluru and Delhi, said ET in its report.

All Yulu models are created and produced by the EV unit of Bajaj Auto, Chetak Technologies. The company from Pune owns less than 20% of Yulu. At an introductory price of 55,555, Yulu unveiled Wynn, its first personal electric two-wheeler, last month. Miracle GR and Dex GR, its third-generation drugs, were introduced earlier this year.

By the end of 2023–2024, Yulu plans to deploy 100,000 vehicles, translating to 1 million–1.5 million monthly active users, said ET.

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Updated: 08 Jun 2023, 08:53 AM IST
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