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Magna increases bet on battery swapping in India with $35M for Yuma
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Magna International, the Canadian auto parts giant, is deepening its commitment to India's electric vehicle ecosystem with a $35 million investment in Yuma Energy. Yuma, a Bengaluru-based battery-swapping network operator for electric two- and three-wheelers, has secured this funding to scale its infrastructure amid India's booming gig economy. The move highlights Magna's belief that battery swapping can achieve scale in India, where millions of delivery vehicles create a unique economic model.
Yuma Energy spun out of the Indian mobility startup Yulu in early 2023 and has already completed over 60 million battery swaps. The network currently has about 100,000 batteries deployed across more than 400 swapping stations in 18 Indian cities, including major hubs like Bengaluru, Mumbai, and the Delhi region. This scale represents a significant foundation in a market where battery swapping has struggled elsewhere.
The latest $35 million injection increases Magna's stake in Yuma, which was formed as a joint venture in 2022. At that time, Magna invested a total of $77 million, committing $25 million to Yulu and $52 million to Yuma, securing a 51% stake in the battery-swapping venture. This new investment will dilute the 49% stake held by Yulu, though the exact new ownership split was not disclosed.
The investment thesis is heavily tied to India's expanding gig economy. Delivery riders lose valuable time and revenue while charging vehicles, and Yuma's managing director, Muthu Subramanian, estimates only 10% to 15% of gig worker vehicles are electric today. The company argues that swapping a battery in under two minutes is far more practical for high-mileage riders than even a 20- to 30-minute fast charge, which requires significant downtime.
Building this convenience is capital-intensive, and Yuma is not yet profitable. However, some older stations are EBITDA-positive, and the firm ended the financial year in March with about ₹1 billion in revenue. Yuma is targeting EBITDA break-even within the next two quarters as it focuses on achieving the necessary scale for positive unit economics.
With the fresh capital, Yuma plans to double its battery fleet to around 200,000 units over the next 12 to 18 months. The network will also expand geographically into new cities like Chennai and Pune. This growth is crucial as Yuma seeks to diversify beyond its major customer, Yulu, which still accounts for the majority of swaps but now represents only 80% to 85% of total volume, with other fleets growing.
Yuma now serves over five fleets and has integrated its batteries with more than 10 vehicle platforms from manufacturers like Kinetic Green and Motovolt. The company expects non-Yulu customers to drive 25% of its swaps within two years. As Yulu itself raises capital to grow its EV fleet, Yuma's expansion is essential to support both its anchor customer and a broader, emerging market of electric delivery vehicles.
