responsAbility, a Switzerland-headquartered impact fund, has announced that it will invest up to USD 25 million on behalf of its investors in BluSmart, India’s leading EV ride-hailing service and EV charging infrastructure network. This investment is part of responsAbility’s broader USD 500 million climate investment strategy aimed at actively reducing CO2 emissions in Asia.
BluSmart, founded in 2019, operates the largest vertically integrated EV ecosystem in Southeast Asia. Its indigenously built, born-electric technology stack operates 6,000 BluSmart EVs (100% electric ride-hailing service) and has completed over 11 million all-electric trips, covering 360 million all-electric kilometers, saving ~26,000 metric tons of CO2 since inception. 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 USD 50 million in annual revenue run-rate and is growing at 100% year-on-year.
With responsAbility’s investment and support, BluSmart will continue its mission to rapidly scale its iconic 100% EV ride-hailing service and build large EV charging infrastructure for a better, cleaner and a more sustainable future. The 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 USD 24 million equity round, which was announced in December 2023. BluSmart has also secured USD 200 million in long-term, sustainable EV asset financing from leading Development Financial Institutions (DFIs).
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. 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.”
responsAbility is one of the world’s leading asset managers specializing in development-related sectors of emerging economies. It supplies debt and equity financing to non-listed companies with business models that target the United Nations Sustainable Development Goals and positively contribute to society and the environment. responsAbility has a USD 500 million climate investment strategy that focuses on reducing CO2 emissions by investing in renewable energy generation, energy efficiency solutions and low-carbon mobility solutions in Asia.
Rochus Mommartz, CEO of responsAbility Investments AG, said: “We are very excited to partner with BluSmart, a pioneer and leader in India’s eMobility space. BluSmart’s innovative business model combines smart technology with clean energy to provide affordable and convenient mobility solutions to millions of urban commuters while reducing greenhouse gas emissions and improving air quality. This investment aligns perfectly with our climate investment strategy and our vision of creating positive impact in emerging markets.”
According to Bain & Company, electric vehicles (EVs) could account for more than 40% of India’s automotive market and generate over $100 billion of revenue by 2030. The Indian EV market is ranked 5th in the world with market size of ~USD 1.42 billion in FY2022 (Mar-22); it is anticipated to expand at 65.1% CAGR to ~USD 47.2 billion by FY2029 (Mar-29). In India, EVs contribute less than 1% to total vehicle sales; it has the potential to grow to more than 5% in the near term.
The Indian EV market is dominated by two-wheelers (2W), which accounted for 85%–90% of all EV units sold in India in FY2022 (Mar-22), followed by four-wheelers (4W) with 7%–9% of sales and three-wheelers (3W) with 5%–7% of sales. The total EV sales in India were 10,54,938 units in the calendar year 2022. The FAME II scheme provides subsidies for various categories of EVs ranging from INR 11,000 (USD 165) to INR 1,34,000 (USD 2,010) per vehicle. The scheme also supports the development of charging infrastructure and battery manufacturing in India.