Bajaj Auto-backed e-bike rental start-up Yulu Bikes said that the US government’s International Development Finance Corporation (DFC) has approved a green loan of $9 million (around Rs 73 crore). The institution’s nod comes as part of its fundraising push to accelerate the Bengaluru-based company’s last-mile mobility growth plans.
"The process of the approval to disbursement of the loan will happen in the next two-three months as both sides will evaluate the various conditions of the loan disbursal", a senior-level company official told Autocar Professional.
Commenting on the green loan, Yulu’s chief financial officer Anuj Tewari said the DFC is focused on advancing economic growth in emerging markets. He said the corporation has given Yulu this line of credit at subsidised interest rates as part of their $2.3 billion committed for Climate-Linked Projects in FY2022. Yulu’s work in India ties in with DFC’s investments to combat climate crisis through mitigation, adaptation and resilience projects that also create a developmental impact in climate-impacted countries, Tewari added.
Yulu, which recently raised Rs 653 crore through Series B funding round from US mobility technology company Magna International Inc, claims to have an average business revenue of $6 million from rental incomes by doing 75 million green deliveries through its Yulu low-speed EVs.