Yuma Energy is an Energy-as-a-Service company located in Bengaluru, India. Yuma Energy has raised $35 million in a Series A funding round. Global automotive supplier Magna International Inc. led the round. The fresh funding is also a major event for the electric vehicle infrastructure provider planning to expand its presence in the country.

Capital deployment and network footprint

The fresh capital will be used to boost the startup’s battery-swapping infrastructure network in more cities in India, and also to expand its customer base, with regard to not only individual EV riders but also fleet operators and original equipment manufacturers (OEMs). 

Yuma Energy, in its efforts to raise capital, announced the acquisition of small-scale battery technology company Grinntech, which would bolster its in-house battery technology and manufacturing capabilities. In addition, the company has defined a specific financial goal for generating positive EBITDA operations by financial year 2027.

Yuma Energy, established in 2023, is a pioneering national investigative battery swapping network for electric mobility services. It serves as a foundational energy supplier for Yulu’s electric vehicle fleet and will provide open energy-swapping services to third-party original equipment manufacturers and last-mile delivery partners. 

Yuma Energy’s Battery-as-a-Service concept separates the battery from the vehicle, allowing drivers to obtain fully charged batteries through flexible subscription and pay-for-use models. Currently, Yuma Energy has over 2,500 charging stations in 18 Indian cities and more than 400 locations. 

The network has more than 100,000 batteries across its platform. The company has achieved more than 60 million battery swaps, building an important operational milestone and providing evidence of the commercial scalability of battery swapping infrastructure in high-use urban applications.

Corporate partnerships and technological advantages

The battery-swapping model is an alternative way to power EVs and offers a different kind of product than plug-in charging stations. The battery swap process occurs in a few minutes and eliminates the need for the vehicle to be plugged in, which can take 30 minutes to several hours depending on the plug-in solution. 

In terms of operational efficiency, the battery swapping program is especially effective in high-frequency applications, such as last-mile delivery, urban goods transportation, and ride-hailing.

Central and state government incentive regimes, rising conventional fuel prices, and growing availability of locally manufactured electric 2-wheelers and 3-wheelers have boosted market demand for this category in India through steady growth. 

The swapping sector is still in its nascent stage compared to conventional charging infrastructure, but policy releases from the Ministry of Power have persistently promoted uptake by aiming to create standardised interoperability frameworks for swapping batteries throughout the industry.

The Series A offering further advances Yuma Energy’s strategic partnership with Magna International, a Canadian automotive component manufacturer with operations in over 25 countries. Before the funding round, Yuma Energy had a presence on Magna’s board that included Group President Matteo Del Sorbo as a board member of Yuma Energy. 

Matteo Del Sorbo said Yuma Energy’s operational success and knowledge of riders, fleet operators, and OEMs were important things that led to Magna’s continued capital investment.

In a reflection of the milestone, Muthu Subramanian, Managing Director and General Manager, Yuma Energy, stated that 60 million battery swaps was a defining moment for the business. The freshly raised funds will be used to accelerate ground infrastructure deployment, expand strategic relationships with commercial fleets and vehicle makers, and boost the platform’s overall technical capabilities, he said.

Conclusion

The $35 million Series A fundraise led by Magna International marks an important milestone in Yuma Energy’s growth journey in the Indian EV market. With the closing of the Grinntech acquisition and an ambition to become EBITDA-profitable in financial year 2027, the startup is well-prepared to expand the battery swapping network beyond 400 spots and 18 cities.

Yuma Energy continues to contribute to the wider push towards sustainable urban mobility in India by enhancing its Battery-as-a-Service solutions and reducing downtime for fleet operators and individual users of e-mobility vehicles.