Yulu targets operational profitability by March 2023.

Yulu, electric mobility as a service (MaaS) company, expects to be profitable by the end of March 2023.

In interaction with businessline, Yulu co-founder and CEO Amit Gupta said the outlook for FY23 is strong, with significant developments in the pipeline, including the launch of a new low-speed category EV bike for personal use during the first half of 2023.

In 2022, the company raised $82 million in a Series B funding round. This was in addition to a $9 million loan confirmed by the US International Development Finance Corporation (DFC).

Yulu celebrated five years in business recently.

“From the standpoint of unit economics, we are actually producing a respectable operating margin. We are almost profitable, but the 10-15 percent gap must be filled. In fact, we want to accomplish that by the end of March. We’re also on a path to EBITDA level of profitability,” said Gupta.

In FY22, the annual business revenue (ARR) was around $6 million (around ₹50 crore).

“This is in some way capped due to our limited fleet size. As we grow our assets, the market is huge, and we are a leading player in the micro-mobility category in India today,” he added.

Additionally, during the first half of 2023, the company is planning to launch an EV bike for personal mobility use.

The existing players in the space are trying to replace the petrol scooter. But we are focused on building and catering to the low-speed category, he added.

Yulu currently offers the Miracle CT and Miracle NV for shared people mobility and the Yulu DeX for shared goods mobility, and overall has almost 13,000 to 14,000 vehicles across three cities-Bengaluru, Delhi, and Mumbai.

“Our popularity stems from the fact that riders do not need a license to ride these bikes. We allow people aged 16 and above to use our vehicles, and we see a wide range of users, such as people going for tuition, college, senior citizens, and those who aren’t comfortable using a bulkier vehicle,” he explained.

Yulu is well capitalised in terms of technology, people, product, demand side, and access to capital in order to build up the fleet size to 1,00,000 bikes in 11 months, noted Gupta.

“We have enough money and are confident in our products. Similarly, our supply chain is strong, as our respective partners in the bike and battery industries are able to produce the necessary bikes and batteries without any interruptions. Moreover, the demand in the current cities is enormous, and as we intend to expand our presence to six to seven other cities, the demand just grows further. Finally, having the technology to expand operations is important, and we are well-positioned on all these fronts,” said the CEO.  

HBL