Switzerland-based responsAbility, an impact-investment firm with over $4.7 billion in assets under management, said it would invest up to $25 million in BluSmart, an electric vehicle (EV) ride-hailing service in India.

The investment, part of responsAbility’s broader $500 million climate strategy aimed at reducing carbon emissions in Asia through investments in low-emission technologies, will help BluSmart expand its EV charging infrastructure to enable large-scale adoption of electric mobility.

BluSmart owns and operates 4,000 EV chargers across 35 locations in Delhi and Bengaluru. It also operates 6,000 EVs in India.

Sameer Tirkar, Principal APAC for Climate Finance at responsAbility, said BluSmart’s role in reducing transport emissions aligns with its mission to invest in sustainable businesses that create positive environmental impact.

“The BluSmart team has built a commendable EV ride-hailing and charging business in India and is building world-class electric charging infrastructure, which is key to rapid EV adoption in India,” he added.

Founded in 2003, responsAbility has invested over $14.2 billion since its inception. The fund invests in climate finance, financial inclusion, and sustainable food.

Last year, responsAbility helped facilitate Norfund’s investment of ₹3.5 billion (~$42.26 million) in Fourth Partner Energy to support its renewables expansion in India, such as off-site solar and wind projects under development in Tamil Nadu, Karnataka, Maharashtra, and Uttar Pradesh.

In 2022, the BluSmart raised $25 million to expand its EV fleet. bp ventures and Green Frontier Capital led the funding.

Electric vehicle sales in India touched an all-time high of 1.53 million units in 2023, a jump of 50% over the million units sold in 2022. EVs accounted for 6.4% of all vehicle sales during the year, according to data from the Ministry of Road Transport and Highways’ Vahan dashboard. India now has over 3.45 million registered EVs.