India’s electric vehicle (EV) ride-hailing space is set to witness a significant boost as BluSmart, a pioneering player in the segment, prepares to raise US $25 million in a pre-Series B funding round.
Funding Round and Investor Participation
BluSmart’s upcoming funding round, projected to conclude by June 2024, is a significant milestone for the company. This round, which will see participation from both new and existing investors, underscores the robustness of BluSmart’s business model and its promising future.
BP Venture, Mayfield, and the climate-based finance company ResponsAbility, which invested US $25 million in early 2024, are some of the company’s notable backers.
Fueling Growth and Expansion
The fresh capital will fuel BluSmart’s growth plans and expand its operations to key Indian cities.
BluSmart’s ambitious growth plans involve more than expanding its fleet to 10,000 electric vehicles (EVs) across Delhi NCR and Bengaluru by the end of 2024. They also aim to significantly improve the environment, further solidifying BluSmart’s position in the EV ride-hailing market.
BluSmart’s commitment to sustainability is evident in its impressive track record. The company claims to have completed over 10 million rides and traveled over 330 million zero-carbon kilometers (205 million miles).
Financial Performance
The company’s financial performance has been equally impressive. BluSmart claims to have reported a revenue of over INR 390 crore (US $46.8 million) in the financial year ending March 31, 2024, a staggering 144% increase from INR 160 crore (US $19.2 million) in the previous fiscal year.
Additionally, the startup claims to have achieved an annualized revenue run rate (ARR) of INR 500 crore (US $60 million) in April 2024, up from INR 290 crore (US $34.8 million) in April 2023.
Growth Potential for BluSmart
The ride-sharing market in India offers BluSmart a significant opportunity to capture a substantial share. With a population exceeding 1.3 billion and rapid urbanization, the demand for convenient and sustainable transportation solutions is rising. Currently valued at approximately $13.4 billion, India’s ride-sharing market is projected to grow at a CAGR of 13.55%, reaching $38.9 billion by 2029.
As urban centers across India grapple with pollution and traffic congestion challenges, BluSmart’s commitment to providing eco-friendly transportation options is poised to play a pivotal role in shaping the future of urban mobility in India.
