While battery swapping has struggled to take off in much of the world, Canadian auto parts giant Magna International believes the model could work at scale in India, where millions of two- and three-wheelers and a fast-growing delivery economy create a different set of economics.
And it’s placing that bet on Yuma Energy, a Bengaluru-based firm that operates a battery-swapping network for electric two- and three-wheelers. Yuma, which spun out of Indian mobility startup Yulu in early 2023, has completed more than 60 million swaps to date and now has about 100,000 batteries deployed across its network.
Magna is now investing another $35 million in Yuma, increasing the auto supplier’s stake from the 51% it took when the joint venture was formed, Yuma managing director Muthu Subramanian said in an interview. As a result, Yulu’s 49% stake will be diluted. Subramanian declined to disclose the new ownership split.
Yulu and Yuma are Magna’s only startup investments in India, the company confirmed to TechCrunch. In 2022, Magna committed a combined $77 million to the two businesses, with $25 million going to Yulu and $52 million to the battery-swapping joint venture.
Betting on India’s gig economy
