Bajaj Auto is, reportedly, in talks to pick up a stake in dockless bicycles and low-speed electric scooter rental startup Yulu as part of its ongoing funding round of over $15-20 million.
The deal may also lead to a closer partnership between Yulu and Bajaj where the automaker may manufacture vehicles specifically for the company, according to the sources.
“Bajaj is currently doing due diligence on the company and the deal may close in the coming weeks,” sources further said.
Yulu was launched in 2017 by Amit Gupta, RK Mishra, Hemant Gupta, and Naveen Dachuri.
It initially started as a bicycle sharing platform for efficient and green first mile and last mile deliveries, as well as short commutes to reduce car-based congestion.
On the other hand, Bajaj Auto Limited was founded by Jamnalal Bajaj in Rajasthan during the year 1940. The conglomerate is a global two-wheeler and three-wheeler manufacturing company based in India. It manufactures motorcycles, scooters and auto rickshaws. The company is a part of the Bajaj Group.
Importantly, if the transaction materialises, it will be the first direct bet by a local automaker in a ride-hailing company in India even though investments in the broader mobility space have been picking up.
Yulu has till now raised about $7 million from backers like Blume Ventures, Wavemaker Partners and 3one4 Capital, besides top entrepreneurs like Flipkart’s Binny Bansal and InMobi’s Naveen Tewari.
The startup is present in Bengaluru, Navi Mumbai and Pune with over 8,000 cycles and 500 e-scooters.
Whereas, other investments in this ventures includes Hero MotoCorp investment in electric bike manufacturer Ather Energy, while its chairman Pawan Munjal has made a personal capacity investment in scooter rental startup Vogo.
South Korea’s Hyundai and Kia Motors invested $300 million in Ola earlier this year.