As part of its broader $500 million climate investment strategy aimed at actively reducing CO2 emissions in Asia, Switzerland-based impact fund responsAbility will invest up to $25 million on behalf of its investors in BluSmart, India’s leading EV ride-hailing service and EV charging infrastructure network and an Uber rival.
This investment will help BluSmart expand its EV charging infrastructure across India and is a significant step in responsAbility’s mission to mobilise capital and invest in solutions that generate positive societal and environmental impact in emerging markets.
Headquartered in Gurugram, India, BluSmart currently operates the largest vertically integrated EV ecosystem in Southeast Asia and operates 6,000 BluSmart EVs (100% electric ride-hailing service). Further, BluSmart also owns and operates 4,000 EV chargers across its 35 EV charging locations spread over 1.4 million square feet in the densely populated megacities of Delhi NCR and Bangalore. BluSmart crossed $50 million in annual revenue run-rate and is growing at 100% year-on-year.
Supporting India’s eMobility and EV Charging Infrastructure Ambitions
Founded in 2019, BluSmart is building an integrated energy infrastructure, mobility and technology business to decarbonize mobility at scale, and these funds will be deployed to build large-scale EV charging superhubs to enable the expansion of its electric ride-hailing service. The investment follows BluSmart’s $24 million equity round, which was announced in December 2023. BluSmart has also secured £200 million in long-term, sustainable EV asset financing from leading Development Financial Institutions (DFIs).
In contrast to Uber and Ola, which provide on-demand cab services in India, BluSmart exclusively offers electric vehicle (EV) rides that need to be scheduled in advance. Despite this deviation from the conventional model, BluSmart has no intentions of altering this approach. The decision is driven by the necessity to expand its fleet significantly with more EVs to support the implementation of an on-demand service.
Co-Founder’s Vision for India’s eMobility Growth
Anmol Singh Jaggi, Co-Founder of BluSmart, said: “BluSmart has been at the forefront of India’s EV mission. Since inception, we have made large-scale investments in real EV assets and EV infrastructure with a singular focus on decarbonizing mobility at scale. With responsAbility’s investment and support, we will continue our mission to rapidly scale our iconic 100% EV ride-hailing service and build large EV charging infrastructure for a better, cleaner and a more sustainable future. Backed by some of the largest funds focused on energy infrastructure, energy transition and climate change, this new round marks a significant milestone in BluSmart’s journey to lead India’s transition to a zero-emissions mobility future.”
Reducing Carbon Emissions in Asia
Sameer Tirkar, Principal APAC for Climate Finance at responsAbility said: “BluSmart’s pioneering role in reducing carbon emissions in urban transport aligns perfectly with responsAbility’s mission to invest in sustainable businesses that create positive environmental and social impact. We are dedicated to supporting these climate-focused growth companies that are actively reducing CO2 emissions in Asia through targeted investments in low-emission technologies. The BluSmart team has built a commendable EV ride-hailing and EV charging infrastructure business in India and is building world-class electric charging infrastructure, which is key to the rapid adoption of EV penetration in India.”
Commitment to Climate Action
This investment in BluSmart is in line with responsAbility’s ongoing dedication to climate action in Asia, as evidenced by its announcement on 28 November 2023. In collaboration with Germany’s development bank KfW and the Dutch development bank FMO, responsAbility launched a $500 million climate investment strategy. This strategy, which aims to actively reduce CO2 emissions in Asia, focuses on investments in low-emission technologies.
