Uber Initiates Talks To Acquire BluSmart, Says Report; Startup Denies

Ride-hailing giant Uber is reportedly in early talks to acquire EV cab-hailing startup BluSmart Mobility.

The development comes at a time when Gensol Engineering, a solar engineering, procurement and construction company, which owns a meaty share of BluSmart’s fleet of 8,500-strong EV fleet, is facing liquidity challenges, ET reported.

Anmol Singh Jaggi, the cofounder of  BluSmart, is the chairman and managing director of Gensol Engineering.

If the deal goes through, it will help Uber strengthen its presence in India’s burgeoning ride-hailing market, where it competes with the likes of Ola, Rapido, eee-Taxi, among others.

However, in a statement to media outlets, BluSmart rejected the report. “We categorically deny any discussions or negotiations regarding an acquisition by Uber. The story is purely speculative and unfounded. As India’s leading EV ride-hailing and charging infrastructure platform, BluSmart remains focused on scaling operations, expanding its footprint, and advancing sustainable mobility,” the startup said.

Citing sources, the ET report said that Uber is examining BluSmart’s assets, particularly its EV fleet, which could help the US-based cab aggregator expand its presence in the segment.

It must be noted that Uber also offers customers an option to book electric cabs for their rides under the brand name Uber Green. The service is available in cities such as Delhi NCR, Mumbai and Bengaluru, among others, where BluSmart also has a presence.

Inc42 has reached out to Uber for comments on the development. 

Founded in 2019 by 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 December and also has a presence in Dubai.

It 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.

This comes days after it was reported that BluSmart defaulted on INR 30 Cr of bonds in early February due to an ongoing cash crunch. However, in a statement to Inc42, the startup said then that there was no cash crunch. It claimed 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. 

Inc42 reported earlier this year that BluSmart was in the middle of raising $50 Mn in its Series B funding round at a pre-money valuation of $335 Mn.