Magna International, a Canadian mobility technology company that builds sensor-based systems for cars such as driver control systems and advanced driver assistance systems (ADAS), is entering the micromobility market. The company has invested $77 million in Yulu, an Indian joint venture micromobility operator, and plans to jointly run a battery-swapping service company.
Magna’s investment is part of Yulu’s $83 million Series B round in which Bajaj Automobile also participated. Along with the funding, Magna will hold a seat on Yulu’s board of directors. Yulu’s latest round will help the company expand to an additional 15 cities over the next 18 months, Magna said, adding that it may go beyond India in the future.
“Micromobility offers Magna a great opportunity for further growth and joining forces with Yulu will help us expand our business into this fast-growing sector,” Matteo Del Sorbo, CEO of Magna New Mobility, said in a statement.
Earlier this year, Magna acquired the technology, IP and assets of Optimus Ride, an autonomous transportation company, to further develop its ADAS offerings.
The new battery exchange entity is currently registered as “Yulu Energy” and already employs 200 employees and is headquartered in Bangalore, Magna. The mobility tech giant says it will be Yulu’s exclusive battery swap partner and will build the infrastructure needed for “millions of swaps per week”.
Magna said it intends to leverage Yulu’s strong market position and network in India to grow Yulu Energy, which the company describes as a battery-as-a-service (BaaS) company. However, it is unclear whether Yulu Energy is modeled after Taiwan’s Gogoro, a growing network of battery-swapping networks that provide private users with their own electric two-wheelers. Yulu Energy has around 10,000 two-wheelers in Bangalore, Delhi and Mumbai to serve the shared mobility market.
“We can see a significant growth opportunity in both BaaS and Yulu [Mobility-as-a-Service] businesses over the next three to four years,” said Amit Gupta, founder and CEO of Yulu. “As the market leader in electric mobility, with a proven business model built on positive unit economics, our focus will now be on establishing a strong and efficient supply chain and growing our operations.”
Neither Magna nor Yulu responded in time to TechCrunch’s request for more information.
