Canadian auto parts maker Magna said it would invest $77 million (about Rs 613 crore) in the electric-bike-sharing platform Yulu and set up a battery replacement company on Monday.

As part of the agreement, Magna will receive a stake in Bengaluru-based Yulu and a seat on the company’s board, Yulu said in a statement.

Yulu has around 10,000 low-speed electric two-wheelers on the roads of Bengaluru, Delhi and Mumbai. According to the statement, it aims to add 15 more cities in the next 18 months, potentially expanding beyond India.

“Magna is expanding into the fast-growing micro-mobility market, investing $77 million in Yulu and creating a battery replacement service company,” the statement said.

This aligns with Magna’s forward-looking strategy to expand its mobility-as-a-service (MaaS) and battery-as-a-service (BaaS) businesses.

With the investment, Magna said it would bring extensive design, engineering and manufacturing capabilities to the new entity, currently registered as Yulu Energy.

Magna said the formation of the battery replacement entity would support the rapid growth of electric vehicles and the required infrastructure. The company said it would act as the exclusive battery replacement supplier for Yulu customers and manage the infrastructure needed for millions of weekly replacements.

The statement said that the new BaaS entity leverages Yulu’s strong market position and network in India and its software expertise. Yulu said there are substantial growth opportunities for BaaS and MaaS businesses in the next three to four years.