BluSmart Mobility, India’s first all-electric ride-hailing platform, is gearing up for its next phase of growth with plans to raise between $80 million and $100 million. Sources indicate the company has initiated discussions with private equity funds, climate-focused investors, and family offices, as it looks to expand its electric fleet and strengthen its EV charging infrastructure. With this fundraising round, BluSmart aims to scale its operations across India and internationally, solidifying its position in the green urban mobility sector.
Credits: Money Control
Aiming for Green Growth: BluSmart’s Fundraising Plans
BluSmart Mobility’s latest fundraising efforts come on the back of a strong foundation laid by earlier investments. The company, founded in 2019 by Anmol Singh Jaggi, Punit K Goyal, and Puneet Singh Jaggi, operates an asset-light business model. BluSmart leases electric vehicles (EVs) on a monthly basis from companies like Energy Efficiency Services Limited (EESL) instead of owning the cars outright. This approach allows them to focus on fleet expansion without the capital burden of purchasing vehicles.
The current round’s proceeds will go toward two important projects: growing BluSmart’s ride-hailing enterprise and creating a more extensive network of EV charging stations. In an email answer to Moneycontrol, a BluSmart representative stated that the business is constantly looking for ways to grow and evaluating its alternatives for debt and equity financing.
Credits: The Economic Times
Both new and current investors have shown a great deal of interest in BluSmart. The business intends to formally reveal its fundraising endeavors as soon as things get closer to completion.
Previous Funding Success and Investor Confidence
BluSmart has previously engaged in substantial fundraising endeavors. The company has closed earlier rounds of funding with success, and Responsibility Investments, a climate finance firm located in Zurich, spearheaded the most recent $24 million fundraising round. Other significant backers include the family office of former Indian cricket star MS Dhoni and ReNew Power founder Sumant Sinha.
After a $24 million equity round just one month earlier, BluSmart received an additional $25 million from responsAbility in January. The company’s steady growth trajectory and investor faith in BluSmart’s goal to develop a cleaner, more sustainable urban mobility solution are demonstrated by this ongoing capital inflow.
A Fast-Growing Fleet and Expanding Charging Network
By the middle of 2024, BluSmart will have over 7,600 electric cars (EVs) in service and over 3,900 charging stations maintained. Although the National Capital Region (NCR) and Bengaluru, India, are the company’s primary operating locations, BluSmart made its worldwide debut in June when it launched a high-end, all-electric limousine service in Dubai.
In India, riders can reserve trips on BluSmart via its mobile app, just like on other services like Ola and Uber. But BluSmart only uses electric vehicles, in contrast to other ride-hailing services that use gasoline and diesel engines. This is in line with India’s larger push for electrification and sustainability in urban transportation. With over ₹550 crore in annual revenue as of July, the company also has an exceptional revenue run-rate.
BluSmart’s Mission: Revolutionizing Urban Mobility
BluSmart Mobility’s primary goal is to transform urban transportation by lowering the carbon impact brought on by regular travels. The increasing demand for environmentally friendly solutions is well aligned with BluSmart’s all-electric fleet as the worldwide push towards sustainable practices and green energy gains speed.
The business is especially well-positioned to benefit from India’s increasing focus on cutting emissions and its dependency on fossil fuels. BluSmart’s expansion plans appear well-timed, given the spike in EV adoption in major cities and government initiatives that support electric mobility.
BluSmart’s Asset-Light Business Model
The asset-light business strategy employed by BluSmart is one of the elements fostering its explosive growth. BluSmart can expand its fleet more quickly and flexibly by avoiding the capital-intensive process of buying automobiles outright by leasing vehicles from organizations like EESL. Additionally, this model lowers operational risk and gives the business the freedom to modify the size of its fleet in response to demand.
