BluSmart, India's pioneering all-electric ride-hailing service, is set to raise $50 million in its Series B funding round, achieving a pre-money valuation of $335 million.

Strategic Expansion Plans

Founded in 2019 by Anmol Singh Jaggi, Puneet Jaggi, and Punit Goyal, BluSmart currently operates a fleet of 8,000 electric cabs across Delhi-NCR and Bengaluru. The company plans to utilize the new capital to:

• Enter New Markets: Launch operations in Mumbai and other key cities.
• Enhance Services: Scale up existing services in Bengaluru.
• Introduce Premium Fleet: Cater to higher-end customers seeking upgraded vehicle options.

Financial Performance and Projections

In the fiscal year 2024 (FY24), BluSmart reported gross revenues of ₹376 crore ($45 million), marking a 135% increase from ₹160 crore ($19 million) in the previous year. The company anticipates revenues of ₹720 crore ($86 million) in FY25, driven by fleet expansion and entry into new cities. The average gross fare per ride was ₹468 ($5.60) in FY24, expected to rise by 20% to ₹561 ($6.70) in FY25.

Competitive Landscape

BluSmart's growth trajectory positions it as a formidable competitor to established ride-hailing giants like Ola and Uber in India. Notably, Ola's valuation was recently reduced by over 50% to $3.5 billion by US-based investment firm Vanguard Group, reflecting challenges in the traditional ride-hailing sector.

Our Opinion on the News

BluSmart's successful funding round and strategic expansion underscore the growing demand for sustainable transportation solutions in India. By focusing on premium services and entering new markets, BluSmart is well-positioned to capture a significant share of the ride-hailing market, particularly among environmentally conscious consumers. This move also reflects a broader industry shift towards electric mobility, aligning with global trends in sustainable urban transportation.

Source: Inc42