BluSmart wants a fresh injection of capital to significantly expand its EV ride-hailing business, Bloomberg reports. The company has 7,500 EVs in its fleet, and it wants to grow that number to 13,000 by March 2025, co-founder Punit Goyal said in an interview. In three years, the Indian startup wants to have 25,000 electric cars.
At present, BluSmart uses a mix of India-made low-cost EVs like the Mahindra e-Verito, Tata Xpres-T EV (Tata Tigor EV), and the Citroën ë-C3, as well as premium models such as the BYD e6, MG ZS EV, and the Hyundai Kona Electric, which are assembled locally from imported knocked-down kits. In addition to adding thousands of electric cars to the fleet, BkusSmart will use the capital for global expansion.
Currently, the company offers EV rides in Delhi-NCR (National Capital Region) in the North and Bengaluru in the South. In June, it will enter Dubai, UAE, as its first international market. The company will have approximately 100 Audi EVs in its fleet there. By December, it wants to grow the Dubai fleet to 300 EVs, including Teslas.
Goyal said that while BluSmart will soon venture overseas, domestic operations will remain its core focus. To give an example, he mentioned the NCR, saying its population was equivalent to “15 Singapores.” He also said the company doesn’t intend to enter small cities, as low-cost service is not its forte.
To date, BluSmart has raised $200 million in growth capital (equity & debt), and it has secured long-term and sustainable EV asset financing of $210 million as well. Currently, it is raising $25 million as part of a three-year $300-million plan, which will close by late June, Goyal said. Rival companies Uber and Ola’s businesses have indicated that profitability can be a challenge in India’s ride-sharing service sector.
While Goyal didn’t reveal when BluSmart may become profitable, he did say that it will nearly double its annual revenue to $110 million by March 2025.
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- Source: https://www.electrive.com/2024/05/28/blusmart-300-million-cash-infusion/