Punit Goyal, BluSmart’s co-founder, intends to extend operations to Dubai using 100 Audi EVs and targets having 300 Audi and Tesla vehicles by December.
BluSmart, India’s largest electric cab operator, plans to secure over USD 300 million within the next three years. These funds will facilitate the addition of thousands more vehicles to their fleet, aiming to rival companies such as Uber Technologies Inc. in a swiftly growing market.
The company, backed by BP Ventures, intends to increase its electric vehicle fleet in India, currently supplied by Tata Motors Ltd., BYD Co., SAIC Motor Corp.’s MG Motor, and Stellantis NV’s Citroën, from 7,500 to 13,000 by March, as stated by co-founder Punit Goyal. By the end of three years, the fleet is expected to reach 25,000 cars. The additional funding will also support BluSmart’s expansion outside of Delhi and Bengaluru, with plans to launch in Dubai next month with around 100 Audi EVs, and aims to boost this number to 300 Audi and Tesla Inc. vehicles by December.
In the competitive Indian ride-sharing market, dominated by Uber and Ola, which is backed by SoftBank Group Corp., BluSmart differentiates itself by banking on customers in major cities willing to pay more for a better experience. Unlike its competitors, who require drivers to own their vehicles, BluSmart leases cars long-term. Goyal emphasized that the company’s focus isn’t on smaller cities due to lower revenue potential there, stating, “Cheap rides, cheap quality, cheap service, and cheap pricing are not our forte.”
BluSmart anticipates nearly doubling its annual revenue to USD 110 million by March 2025, based on current monthly financial performance. Goyal did not provide a specific timeline for when the company expects to turn profitable.
The company has been consistent with its all-electric fleet policy, as part of a broader move towards cleaner transportation. This shift is crucial as road transport is a major contributor to air pollution in urban India, which can lead to severe health issues and even premature deaths. The electrification of the transport sector aligns with India’s goal to reach net zero carbon emissions by 2070, despite challenges such as high costs and insufficient charging infrastructure.
BluSmart has already raised USD 200 million in equity and long-term growth debt and is currently in the process of raising an additional USD 25 million. This round of funding, expected to close by late June, includes contributions from the company’s founders, existing investors, family offices, and founders of other startups. Despite plans for international expansion, Goyal emphasized that their primary focus would continue to be the Indian market, highlighting the significant potential in the populous region around Delhi.
