Magna has poured another $35M into Yuma Energy, the Bengaluru battery-swapping network for electric two- and three-wheelers, deepening the auto supplier’s bet on India’s gig economy.
The investment lifts Magna’s stake above the 51% it took when the joint venture was formed with mobility startup Yulu, whose 49% holding will be diluted, Yuma managing director Muthu Subramanian said. He declined to disclose the new ownership split.
Yuma, which spun out of Yulu in early 2023, has completed more than 60 million swaps and keeps roughly 100,000 batteries in the field. Magna first committed $77M to the pair in 2022, splitting $25M to Yulu and $52M to the swapping venture.
The thesis rests on India’s delivery riders. Only about 10% to 15% of gig-economy vehicles are electric today, Subramanian estimates, and swapping beats fast charging for riders who need uptime: a battery exchange takes under two minutes, versus 20 to 30 minutes at a charger.
Subramanian argues the economics favor EVs for gig riders, whose daily mileage makes time off the road expensive, which is why swapping beats charging for high-uptime work.
For Magna, the round extends a rare startup bet in India and a hedge on the swapping standard winning out over charging infrastructure in dense cities. Yulu and Yuma remain its only startup investments in the country.
