Delhi NCR-based electric mobility startup, BluSmart, is on the verge of raising $25 million (approximately INR 208 crore) in a new funding round from Swiss-based impact investor, responsAbility Investments AG. This funding round will involve a mezzanine structure, combining partial equity dilution and debt.
Expanding Electric Vehicle Charging Infrastructure
BluSmart, which competes with industry players like Bengaluru-based Lithium, Delhi-based eee-Taxi, Kolkata-based Snap-E Cabs, as well as giants Ola and Uber, intends to utilize the newly acquired funds to expand its electric vehicle charging infrastructure throughout India.
This fresh funding comes on the heels of a recent equity funding round where BluSmart successfully raised $24 million (INR 200 crore), with participation from existing investors, founders, and the leadership team.
Dominating the EV Charging Landscape
BluSmart currently owns and operates over 4,000 EV chargers across 34 EV charging superhubs, establishing a strong presence in the electric vehicle charging landscape.
Driving India's EV Mission Forward
Commenting on the investment, BluSmart's leadership emphasized their commitment to India's EV mission. They have made substantial investments in real EV assets and infrastructure, with a primary focus on scaling up and decarbonizing mobility.
With responsAbility's investment and support, BluSmart aims to further expand its 100% EV ride-hailing service and develop extensive EV charging infrastructure, contributing to a cleaner, more sustainable future.
responsAbility's Climate-Focused Investment
Sameer Tirkar, principal APAC for climate finance at responsAbility, highlighted BluSmart's pivotal role in reducing carbon emissions in urban transportation, aligning perfectly with responsAbility's mission to invest in sustainable businesses that drive positive environmental and social impacts. responsAbility is dedicated to supporting climate-focused growth companies that actively reduce CO2 emissions in Asia through investments in low-emission technologies.
BluSmart's Evolving Business Model
BluSmart recently introduced a new fare structure, featuring surge pricing during different times of the day, similar to app-based cab aggregators like Ola and Uber. This change came as a commitment from BluSmart's founders to eliminate cancellations and surge pricing, setting it apart from its competitors.
The new fare structure comprises two time slots: rush hours with higher charges and relaxed hours with lower rates.
In the fiscal year 2021-22 (FY22), BluSmart experienced a 66% year-on-year increase in its consolidated net loss, widening to INR 65.5 crore from INR 39.4 crore in FY21. Despite robust business growth, the electric ride-hailing company faced bottom-line challenges in FY22 due to significant expense increases.
Investment Interest in Indian EV Startups
Indian EV startups have gained substantial traction from investors due to their offerings in sustainable mobility, energy infrastructure, commercial mobility, battery management systems, and more. These startups are not only reducing carbon emissions but also providing cost-effective alternatives to fossil fuels, making them increasingly attractive to investors.