EV ride-hailer BluSmart seeks $300 million to expand its car fleet in the next three years. BluSmart has 7,500 electric vehicles and aims to increase this number to 13,000 by March 2025. It aims to reach 25,000 cars in three years.
BluSmart wants to compete with Uber and Ola by expanding its operations beyond Delhi, especially in Bengaluru. The company is also growing internationally, starting in Dubai. Next month, it will launch about 100 Audi electric vehicles there, with plans to expand to 300 EVs, including Tesla cars, by December.
EV Ride-hailer BluSmart’s Big Expansion Plans
BluSmart, India’s largest electric car operator, plans to grow its fleet significantly. The company will increase its electric vehicles, supplied by Tata Motors, BYD, MG Motor, and Citroën, from 7,500 to 13,000 by March. Co-founder Punit Goyal says they aim to have 25,000 cars in three years. Some of the money they raise will help BlueSmart expand its car fleet beyond Delhi to Bengaluru and Dubai. Next month, BluSmart will launch in Dubai with 100 Audi electric cars and plans to have 300 Audi and Tesla cars there by December.
While Uber and Ola dominate India’s ride-sharing market, they often struggle to make a profit and face complaints about service. BluSmart believes customers will pay more for a better experience, which they can provide because they lease their cars long-term instead of requiring drivers to own their vehicles.
BluSmart’s Growth and Revenue Goals
Based on current monthly performance, BluSmart estimates it will nearly double its annual revenue to $110 million by March 2025. However, co-founder Punit Goyal did not specify when the company expects to become profitable. While BluSmart has always used an all-electric fleet, its competitors are also moving toward greener options. Uber plans to add 25,000 electric vehicles in India, though it hasn’t given a timeline. Ola started deploying 10,000 electric scooters earlier this year.
According to the International Energy Agency, road transport contributes to about 30% of air pollution in India’s big cities, leading to serious health issues and even premature deaths.
Importance of Electric Vehicles in India
Electric vehicles are the key to India’s goal of achieving net zero carbon emissions by 2070. However, progress is slowed by the high cost of electric vehicles (EVs) and limited charging stations. Ride-hailing adds to the challenge: a solo ride-hailing trip produces about 47% more emissions than a private car trip. However, using an EV for these trips can reduce emissions by about half, according to the Union of Concerned Scientists.
BluSmart’s Funding and Focus on India
BluSmart has already secured $200 million in equity and long-term debt. It is currently raising an additional $25 million from founders, existing investors, family offices, and other startup founders. This is part of their three-year plan to raise $300 million, with the current round expected to close by late June.
Despite plans to expand to Dubai, BluSmart will focus mainly on India. Co-founder Punit Goyal emphasized that the Delhi area alone offers a huge market opportunity, with a population equivalent to 15 times that of Singapore.
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