Magna International, a Canadian auto parts giant, is significantly increasing its investment in battery swapping technology in India by committing an additional $35 million to Yuma Energy. This investment raises Magna’s stake in the Bengaluru-based battery-swapping firm from 51% to a larger share, diluting the stake of Yuma’s parent company, Yulu. Yuma operates a network designed for electric two- and three-wheelers, having completed over 60 million battery swaps and deployed approximately 100,000 batteries across its infrastructure.

Yuma, which spun out of Yulu in early 2023, is focused on addressing the unique challenges of India’s gig economy. With a growing number of delivery riders, many of whom currently use gasoline-powered vehicles, Yuma aims to provide a more efficient alternative through its battery-swapping model. According to Yuma’s managing director, Muthu Subramanian, only about 10% to 15% of vehicles used by gig workers in India are electric, indicating significant potential for growth as more riders transition to electric vehicles (EVs).

Addressing the Needs of Gig Workers

Subramanian emphasized the importance of uptime for gig workers, stating, “With Indian gig workers’ high runtime on a daily basis, an EV makes absolute sense in terms of cost of ownership.” Yuma’s battery-swapping solution allows riders to exchange depleted batteries in under two minutes, contrasting with the longer wait times associated with fast charging. This efficiency is crucial for delivery riders who cannot afford to lose time on the road.

Despite the promising model, Yuma faces challenges in scaling its operations. The company is not yet profitable, although some of its older swapping stations have reached EBITDA-positive status. Yuma ended the financial year in March 2026 with approximately ₹1 billion (about $10.5 million) in revenue and aims to achieve EBITDA break-even within the next two quarters. The investment from Magna will primarily be used to expand Yuma’s swapping infrastructure and double its fleet of batteries over the next 12 to 18 months.

Expansion Plans and Market Potential

Yuma currently operates over 400 swapping stations across 18 Indian cities, including major urban centers like Bengaluru, Mumbai, and Delhi. With the new funding, the firm plans to expand into Chennai and Pune while increasing the number of stations in existing markets. Yuma’s growth is also supported by its diversification beyond Yulu, as it now serves more than five fleets and has integrated its batteries with over ten vehicle platforms, including models from Kinetic Green and Motovolt.

Looking ahead, Yuma is targeting a future where non-Yulu customers account for about 25% of its swaps within the next two years. The company is also considering international expansion into Southeast Asian markets and parts of Africa, where the demand for two-wheelers is high. Subramanian noted that Yuma designs and manufactures its own battery packs and charging units, allowing it to maintain control over both the hardware and the network.

As battery swapping continues to gain traction in India, Magna’s investment in Yuma Energy underscores the potential of this model to meet the needs of a rapidly evolving gig economy. For more details, visit the original article on TechCrunch.