Bengaluru-based shared electric two-wheeler company Yulu has raised ₹1.6 billion ($19.25 million) in equity funding from existing investors Bajaj Auto and Magna International.

The company will use these funds to scale up vehicles, operational locations, product and technology innovation, and strengthen market leadership to meet the user demand. Over the last year, the company said it has experienced a 5x growth in its revenue due to the increasing demand for shared mobility.

Operational since 2017, the company operates a fleet of 30,000 electric vehicles (EV) deployed across Bengaluru, Mumbai, Navi Mumbai, Delhi and Gurugram, addressing first and last-mile mobility needs and reducing carbon emissions.

Yulu also expects to raise its series C funding later this year. “Yulu will continue to strengthen its leadership in the mobility-as-a-service (MaaS) segment by deepening existing business lines and opening up new use cases and geographies. Hence, we will look to raise additional funds to power our growth,” said Amit Gupta, co-founder and CEO of Yulu.

“We continue to leverage our combined expertise in consumer knowledge, technology, and manufacturing to build a class-leading business in this space. We are supportive of Yulu’s plans, and the current investment is an outcome of the shared vision and strategy to realize it,” said Rakesh Sharma, executive director of Bajaj Auto.

In September 2022, the company raised equity funding of ₹6.5 billion ($82 million) in a Series-B funding round led by Magna International. Bajaj Auto also participated in the funding round.

To accelerate the adoption of EVs in the country, the union government recently increased the outlay of the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME-II) program by $180.7 million.

Last year, the sale of EVs registered a record high of 1.53 million units, a 50% year-over-year increase from 2022. EV sales accounted for nearly 6.4% of the overall automobiles sold in the country.