BluSmart Electric Mobility, an all-electric ride-hailing company has raised nearly $250 million (Rs 1,997 crore) of funds from investors. This is inclusive of the funds raised from BP’s venture capital division.
Anmol Jaggi, Co-Founder, Blusmart Electric Mobility said that the EV fleet aims to finalise the deals with impact funds and private equity investors within the next 2-month period. He added, “Bp Ventures already has a stake in BluSmart and will be one of the lead investors in this round as well. Most of the other funding will come from global investors based in the U.S. and Europe.”
Indicating a rough valuation for ride-hailing companies, Jaggi estimates that to be around 15-18 times BluSmart’s annual revenue run rate. He, however, did not disclose the actual valuation at which BluSmart raised the money.
The funds will be used for purchasing more EVs and expanding the charging infrastructure. The company plans to have a holistic approach to launch services in more Indian cities along with more tech-based investments. The plan of action includes the deployment of more than 5,000 electric cars by the end of the year. Further, this plan is expected to reach a 30,000 cumulative figure by the end-2023, says Jaggi.
Back in September last year, Bp Ventures invested $13 million (Rs 1,038 crore) in BluSmart as its first Indian deal.
The British oil company’s investment arm is open to more opportunities for investments in ventures related to the EV sector – EV charging infrastructure, battery swapping, or energy storage.
BlueSmart is a competitor of the ride-hailing giant Uber and the top domestic player – Ola. The company, backed by Japan’s Softbank Group currently owns a fleet of 1,800 electric cars, the majority of which are brought from Tata Motors.
At present, it is awaiting an order from Tata Motors which has 13,500 electric cars. Additionally, the fleet includes EVs from MG Motors, owned by Chinese automaker SAIC Motor Corp, and China’s BYD Co.
While the Indian automobile market is being directed toward the adoption of EVs and eyes at least 30 per cent of new car sales to be electric by the end of FY23, a major chunk can be worked out if the fleet operators take the lead.