EV mobility start-up BluSmart raises $42 mn from BP Ventures & others

Indian ride-hailing start-up BluSmart has raised $42 million in an investment round that saw the participation of several investors including BP Ventures which is the investment division of energy giant BP Plc and currently holds a 20 per cent stake in the company.
 
The funds will be used to strengthen its presence in major cities as well as more than double its fleet to 10,000 over the next one year.
 
BluSmart is currently valued at $250 million, its co-founder and CEO, Anmol Jaggi told Bloomberg News. The co-founders of the company also participated in the round, he said at the time of announcing the fundraise.
 
BluSmart wants to take on the country’s biggest players in the ride hailing space including Ola Cabs and Uber Technologies. Sharing his thoughts on the current state of the market, Jaggi said, ‘"Uber and Ola aren't doing justice to their customers or drivers. Those platforms are losing money; their business doesn't have unit economics."
 
The Gurugram-based company was founded in 2019 by Punit K Goyal, Anmol and Puneet Singh Jaggi. Over the years, it has raised $109 million as part of its seed and Series A rounds. The Covid pandemic played a role in putting a halt to the companies’ services. However, the company is now on its path to recovery and has expanded its operations to cover important cities such as Delhi and Bengaluru.
 
Additionally, while Ola and Uber are gradually integrating more electric vehicles into their large fleets, BluSmart is an out-and-out EV company and Jaggi sees an opportunity in providing customers with EVs exclusively. He thinks electric vehicles can generate better income for drivers and the platform, while providing clean and reliable rides to users.
 
Jaggi also told Bloomberg that the strategy seems to be working as the revenue of the company has tripled in the last three quarters.

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