In 2023, this marks the startup’s second-largest EV addition. Earlier in March, Gensol Engineering, a BSE-listed engineering firm, secured INR 643 crore from the government-owned Power Finance Corp. The funds were used to buy 5,000 e-cars from Tata Motors and MG Motor India, which were then leased to BluSmart, its sister company, and other clients.
BluSmart Mobility is set to acquire 3,800 electric vehicles (EVs) from Tata Motors and MG Motor India as the all-electric ride-hailing startup expands in the Indian electric mobility sector. This purchase follows their earlier 2023 acquisition, making it their second-largest EV induction. In March, Gensol Engineering, listed on the BSE, secured INR 643 cr from Power Finance Corp. to buy 5,000 e-cars from the same manufacturers for leasing to BluSmart and others.
Funded by an INR 500 cr state-bank loan, these latest vehicles will be delivered over 12-15 months, boosting BluSmart’s fleet to 9,300 from 5,500, primarily sourcing from Tata Motors. Plans include fleet expansion to 21,000-22,000 by 2025.
BluSmart is also finalizing another fundraising round, which is expected to be announced within a month. Unlike Ola and Uber’s asset-light model, Gensol owns its EVs. Backed by venture capital, EV startups are adopting new technologies like battery storage and swapping for better economics. These new entrants plan to use full-time drivers, shifting from the gig economy model to owned EV fleets with employed drivers.
In May, BluSmart raised USD 42 million in debt and equity, partly funded by its founders and leaders. Its investors include BP Ventures, Inflection Point Ventures, and LetsVenture. This funding, involving USD 37 million in equity, followed a failed USD 250 million funding attempt.
Meanwhile, Gensol continues its EV manufacturing plans, with production underway at its Chakan factory near Pune. It is expecting to launch cargo and personal EVs next year.
