BluSmart Mobility, an electric vehicle (EV) ride-hailing company, spent Rs 98 crore to make Rs 29 crore in the fiscal year 2022 (FY22). The company’s losses widened from Rs 62 crore in FY21.
BluSmart’s losses are mainly caused by high marketing and promotional expenses, totaling Rs 60 crore in FY22. The company invested in expanding its fleet and charging infrastructure, adding 1,500 electric cars and 1,000 charging points.
BluSmart’s losses are common among EV startups due to early investments in fleets and charging infrastructure. However, the company is optimistic about long-term profitability, aiming to achieve it in FY24.
- Founded in 2019 by Anmol Jaggi, Puneet Jaggi, and Punit Goyal, BluSmart provides electric cabs in Delhi-NCR and Bengaluru. It is different from Uber and Ola. BluSmart offers pre-scheduled cab services, not on-demand.
Cabs and charging facilities were revenue sources in FY22. Revenue breakdown was not disclosed. Driver-related cost was 24.3% of total expenditure, reaching Rs 23.8 crore in FY22. Lease rent expenses for BluSmart grew 91.3% to Rs 19.9 crore in FY22.
BluSmart raised $109 million, with $85 million in Series A and $150 million EV leasing loan.
Factors that could help BluSmart achieve profitability in FY24 include:
- Increased demand for electric cars in India, expected to continue in the coming years.
- Anticipated reduction in battery costs, a significant expense for EV startups.
- Government incentives like subsidies and tax breaks offered to EV startups in India.
BluSmart is a well-funded EV startup with strong growth potential. It invests heavily in expanding fleet and charging infrastructure. The company aims to achieve profitability in FY24. If successful, BluSmart could become a leading EV ride-hailing company in India.
