BluSmart aims to raise $300 million to boost EV fleet
India's leading electric cab operator, BluSmart, has announced plans to raise over $300 million within the next three years. This ambitious fundraising goal is part of a larger strategy to significantly expand its fleet and compete with industry heavyweights like Uber and Ola. Co-founder Punit Goyal revealed that the company intends to increase its Indian fleet of electric vehicles from 7,500 currently to 13,000 by March next year.
BluSmart's expansion beyond India and revenue projections
BluSmart is not limiting its expansion to India alone. The company plans to extend its services beyond Delhi and Bengaluru, with a launch in Dubai scheduled for next month. Goyal stated that the company will operate approximately 100 Audi EVs initially, with plans to increase this number to 300 Audi and Tesla vehicles by December. Based on current financial performance, BluSmart projects a near doubling of its annual revenue to $110 million by March 2025.
BluSmart's strategy against Uber and Ola
Despite the strong presence of Uber and Ola in India's ride-sharing market, BluSmart is confident about its growth prospects. Goyal believes that customers in major cities are willing to pay a premium for better service quality. He stated, "We don't want to go to small cities because that's not where the revenue comes from," adding that cheap rides and services are not their forte.
BluSmart's commitment to electrification amidst competitors
BluSmart has maintained an all-electric fleet since its inception, contributing to India's commitment to achieving net zero carbon emissions by 2070. This comes as competitors Uber and Ola are also introducing greener options. Last year, Uber announced plans to add 25,000 electric vehicles in India, while Ola began deploying 10,000 electric scooters earlier this year. Road transport contributes up to 30% of air pollution in major Indian cities, according to the International Energy Agency.
BluSmart's funding and continued focus on India
BluSmart has already secured $200 million in equity and long-term growth debt, and is currently raising an additional $25 million. This funding round is part of the company's three-year $300-million plan, expected to close by late June. Despite expanding into Dubai, Goyal emphasized that India will remain the company's core focus. He noted that the area around Delhi alone could fit "15 Singapores in terms of population," highlighting a significant market opportunity.
