BluSmart Repays INR 30 Cr After Defaulting On Bonds

Electric cab-hailing startup BluSmart Mobility reportedly defaulted on INR 30 Cr of bonds in early February.

BluSmart, which is in the middle of raising about INR 434 Cr in its Series B funding round, was required to repay INR 30 Cr secured via non-convertible debentures (NCDs) with a coupon rate of 12% on February 3, Mint reported.

Sources told the daily that the startup made delayed payments to debenture holders due to a cash crunch. While INR 18 Cr was repaid by February 21, the remaining debt was settled by February 22.

However, in a statement sent to Inc42, BluSmart said that there is no cash crunch. The startup said that it paid INR 10 Cr to 160 bondholders on the due date of February 3, while the remaining INR 20 Cr was repaid in full between February 4 and February 22. 

“All outstanding debt against the NCD has been paid. With this repayment, the outstanding debt amount of BluSmart reduces significantly and is at the lowest level since the beginning of 2023. We are confident in our growth trajectory and will continue to build a strong brand supported by strategic expansion, increasing focus on premium offering, and expanding our user base,” the startup said in the statement.

Meanwhile, the Mint report said that Catalyst Trusteeship Ltd, the trustee of the bond, has now called a meeting of debenture holders on March 17, during which BluSmart would have to convince them to not declare a “cross-default”, which puts the borrower in default of all payment obligations if it fails to repay one on time.

Founded in 2019 by Anmol Jaggi and Punit K Goyal, BluSmart offers EV ride-hailing services and charging infrastructure across Delhi NCR and Bengaluru. It expanded its services to Mumbai last month and also has a presence in Dubai.

BluSmart currently operates over 8,500 EVs and has a community of over 10,000 active driver partners. Its EV charging network includes 5,800 stations across 50 hubs in Delhi NCR, Mumbai, and Bengaluru, covering over 2 Mn sq. ft.

In the statement sent to Inc42, the startup said that it is on track to close FY25 with a GMV of INR 675 Cr as against INR 376 Cr in FY24.

This comes over a month after Inc42 exclusively reported that BluSmart was in the process of raising $50 Mn in its Series B funding round at a pre-money valuation of $335 Mn.

The round will see participation from some of its existing investors, HNIs, family offices, promoters and a couple of  VC funds. BluSmart’s existing investors include responsAbility Investments AG, Sumant Sinha, MS Dhoni Family Office, BP Ventures, Survam Partners, Mayfield India Fund, 100Unicorns, JITO, Green Frontier Capital. 

Overall, BluSmart has raised $136 Mn in equity funding to date. 

The Delhi NCR-based startup competes against Bengaluru-based Lithium, Delhi-based eee-Taxi, Kolkata-based Snap-E Cabs as well as giants like Ola and Uber.

Editor’s Note: The story has been edited to add BluSmart’s statement. The headline has also been changed to reflect the same.