Magna increases bet on battery swapping in India with $35M for Yuma
Magna's investment in Yuma Energy has reached $87 million as the Canadian auto supplier increases its majority stake in the Indian battery-swapping firm.
Magna International, a Canadian auto parts giant, is doubling down on its bet on battery swapping in India with a $35 million investment in Yuma Energy, a Bengaluru-based firm. The move comes as Magna seeks to capitalize on India's burgeoning gig economy and growing delivery economy, which present unique economics for electric vehicles (EVs).
Yuma, spun off from Indian mobility startup Yulu in early 2023, has already completed over 60 million battery swaps and operates around 100,000 batteries under its network. Magna's latest investment, increasing its stake to 78% from 51%, will be used to expand Yuma's swapping infrastructure and double its fleet of batteries over the next 12 to 18 months.
Yuma's business model hinges on the idea that battery swapping is more practical and efficient than fast charging for high-mileage gig workers, who lose valuable time while charging their EVs. Despite not being profitable yet, Yuma is targeting EBITDA break-even within the next two quarters. The firm currently operates in 18 Indian cities and plans to expand into Chennai and Pune in the coming quarters.
While Yuma is focused on India for now, Subramanian, Yuma's managing director, hinted at potential overseas expansion into Southeast Asian markets and parts of Africa in the longer term.
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