Yulu Bikes, which offers small electric two-wheelers on rent, has raised $ 82 million that is about Rs. 653 crore from investors led by Canada’s Magna to drive its expansion plan.

Existing investors, including Bajaj Auto, also participated in the funding round, which saw automotive parts major Magna pump in $77 million.

Amit Gupta, cofounder, Yulu, says, “The funds will be used for deploying more bikes and for setting up a battery-swapping network in the country in partnership with Magna.”

Yulu’s two-wheelers can be hired for short durations using its mobile application. The blue, single-seat two-wheelers have become a common sight in Delhi, Bengaluru and Mumbai.

Gupta says, “The company is looking to ramp up its rental fleet to over 100,000 two-wheelers from about 10,000 at present. For further capital requirements to reach that scale, the company will be raising debt. Yulu has tied up with Bajaj Auto for the manufacturing of these vehicles.”

On the battery-swapping side, Magna and Yulu will be setting up a new company that has a placeholder name of Yulu Energy. Under this company, Yulu and Magna plan to leverage the existing battery-swapping and charging network of the shared mobility company and open it to other companies and the public.

The company is targeting a network of over 500 charging stations over the next 12 months. Companies planning to tap into this network will have to adapt to the battery and charging standards of Yulu.

“In future, the company plans to adopt an additional charging standard for better usability across other makes of electric vehicles,” adds Gupta.

Matteo Del Sorbo, executive vice president, Magna says, “It’s a large investment that Magna is making both on the mobility side as well as the battery-as-a-service company that we are creating. So, this is our entry into the Indian market, and we feel we have a competitive advantage together with Yulu.”