In the fast growing ride hailing market, electric cab operator BluSmart is seeking to raise more than $300 million in three years to add thousands of cars to its fleet, reported Bloomberg. BluSmart's co-founder Punit Goyal in an interview to Bloomberg said that the company will increase its Indian fleet of electric vehicles to 13,000 by March from 7,500 currently. In three years, the firm aims to have 25,000 cars
The EVs are supplied by Tata Motors Ltd., BYD Co., SAIC Motor Corp.’s MG Motor and Stellantis NV’s Citroën
As per Bloomberg, part of the funding it raises will go toward the company’s expansion beyond Delhi and Bengaluru. Next month, the company will launch in Dubai with about 100 Audi EVs, and plans to run 300 Audi and Tesla Inc. vehicles there by December.
BluSmart's expansion plans come even as Uber and Ola dominate India's ride-hailing market share. However, both the companies are struggling to make profit consistently and are facing a slew of complaints about deteriorating services. Meanwhile, BluSmart is planning to tap into customers who are willing to pay more for a better experience. As per Bloomberg, the startup says it can deliver because it exclusively operates its fleet of cars on long-term leases whereas the drivers who work for its rivals must own their own vehicles.
“We don’t want to go to small cities because that’s not where the revenue comes from,” said Goyal. “Cheap rides, cheap quality, cheap service and cheap pricing are not our forte.”
The company also estimates that it will almost double annual revenue to $110 million by March 2025, based on its current monthly financial performance.
BluSmart's rivals are also rolling out greener options to its customers. Uber last year said it will add 25,000 electric vehicles to its platform in India, though didn’t specify a timeline, and Ola began deploying 10,000 electric scooters earlier this year.
BluSmart, which has secured $200 million in equity and long-term growth debt so far, is currently raising $25 million that Goyal said includes investment from its founders, existing investors, family offices and founders of other startups.The funding round, which is part of its three-year $300-million plan, will close by late June
Also watch: Electric ride-hailing firm BluSmart raises $24 million to expand charging infrastructure