EV Ride-Hailer BluSmart Seeks $300 Million to Expand Fleet and Challenge Uber

BluSmart , India’s largest electric cab operator, is set to raise over $300 million in the next three years to significantly expand its fleet and challenge the dominance of Uber and Ola in the burgeoning ride-hailing market. The company, backed by BP Ventures, plans to increase its electric vehicle (EV) count from 7,500 to 13,000 by March 2025, and eventually to 25,000 cars within three years, co-founder Punit Goyal shared in a recent interview.

Expanding Horizons

BluSmart’s fleet, sourced from top manufacturers like Tata Motors , 比亚迪 , MG Motors , and Stellantis NV’s 雪铁龙 , will not only grow in India but also make a debut in Dubai. Starting next month, BluSmart will launch in Dubai with around 100 Audi India EVs, and plans to expand to 300 Audi and Tesla vehicles by December.

Competing on Quality

Unlike Uber and Ola, which rely on drivers owning their own vehicles, BluSmart operates its fleet on long-term leases, ensuring a consistent and premium customer experience. This strategy is part of BluSmart’s bid to attract customers willing to pay more for better service.

“We don’t want to go to small cities because that’s not where the revenue comes from,” said Goyal. “Cheap rides, cheap quality, cheap service, and cheap pricing are not our forte.”

Financial Projections

BluSmart is on track to almost double its annual revenue to $110 million by March 2025, based on its current financial performance. While Goyal did not specify when the company expects to turn a profit, the focus remains on revenue growth and market expansion.

Commitment to Sustainability

BluSmart has maintained an all-electric fleet since its inception, aligning with India’s goal to achieve net zero carbon emissions by 2070. This commitment comes at a crucial time when road transport is responsible for up to 30% of air pollution in India’s urban centers, according to the International Energy Agency.

While Uber and Ola are also making strides towards greener options, with Uber planning to add 25,000 EVs in India and Ola rolling out 10,000 electric scooters, BluSmart is setting itself apart with its fully electric, premium fleet.

Funding and Future Plans

So far, BluSmart has secured $200 million in equity and long-term growth debt. It is currently in the process of raising an additional $25 million, which includes investments from its founders, existing investors, family offices, and other startup founders. This funding round is expected to close by late June and is part of the larger $300 million fundraising plan.

Despite its international foray, BluSmart’s primary focus will remain on India. “You can fit 15 Singapores in terms of population in the area around the capital of Delhi,” Goyal noted, highlighting the immense opportunity in the domestic market.

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