Key facts
- Magna International is investing $35 million in Yuma Energy, an Indian battery-swapping network.
- Yuma operates a network for electric two- and three-wheelers, completing over 60 million swaps.
- The investment increases Magna's stake in Yuma, which spun out of Yulu Mobility.
- Yuma plans to use the capital to expand its swapping infrastructure and battery fleet.
- The company aims for EBITDA break-even within the next two quarters and plans expansion into new Indian cities.
Magna International, a major Canadian auto parts manufacturer, is significantly increasing its investment in Yuma Energy, an Indian company specializing in battery swapping for electric two- and three-wheelers. Magna is injecting an additional $35 million into Yuma, which it co-founded with Yulu Mobility in early 2023. This latest funding round will further dilute Yulu's stake in Yuma, which previously held a 49% share.
Yuma has completed over 60 million battery swaps and deployed approximately 100,000 batteries across its network, primarily serving the growing gig economy in India. The company believes battery swapping offers a more practical solution than fast charging for high-mileage delivery riders, allowing them to regain uptime quickly. Despite being capital-intensive and not yet profitable, Yuma is targeting EBITDA break-even within the next two quarters.
The new capital infusion is earmarked for expanding Yuma's swapping infrastructure and doubling its battery fleet over the next 12 to 18 months. Yuma operates in 18 Indian cities and plans to expand into Chennai and Pune. While Yulu remains a major customer, Yuma is diversifying its client base, with non-Yulu customers accounting for a growing percentage of swaps. Yuma differentiates itself by designing and manufacturing its own battery packs and charging units.