Evera Cabs offers to lease 1,000 BluSmart cars financed by PFC, IREDA

Evera Cabs has submitted a proposal to lease 1,000 BluSmart EVs financed by PFC and IREDA as part of its expansion strategy while lenders explore recovery from the defunct service

Evera Cabs has submitted an offer to the interim resolution professional (IRP) overseeing Gensol Engineering’s insolvency proceedings to lease 1,000 electric cars previously run by the now-defunct cab-hailing service BluSmart.

 

Both the firms, ride-hailing startup BluSmart and renewable energy firm Gensol, were owned by the same promoter group. BluSmart had leased over 4,000 cars from Gensol.

 

The fleet, financed by public sector lenders Power Finance Corporation (PFC) and Indian Renewable Energy Development Agency (IREDA), could support Evera’s expansion plans while offering lenders a potential recovery route.

 

“We have sent a proposal to the IRP for a monthly lease plan to get cars financed by PFC and IREDA. After the IRP, the proposal will be approved by the Committee of Creditors (CoC). We hope to hear from the concerned parties very soon,” said Nimish Trivedi, co-founder and chief executive officer of Evera. 

Trivedi, however, noted that the leasing decision would also depend on the condition of the cars.

 

According to media reports, both lenders had been considering auctioning the EVs, which were financed through loans to Gensol and subsequently leased to BluSmart. 

 

Business Standard sent an email to the IRP, but the query didn’t elicit any response.

 

The Delhi-based startup has already secured 500 BluSmart EVs on lease to date from banks, high-net-worth individuals (HNIs), NBFCs, and family offices. The company is now expanding its presence further in the EV mobility segment.

 

Evera’s app, which caters to both corporate and individual users, has recently started an hourly rental service in Delhi NCR.

 

The service currently offers Sedans and SUVs and can be booked for a minimum duration of two hours and a maximum of 12 hours. With the launch of its rental service, the share of the business-to-consumer (B2C) segment is set to rise to 40 per cent, up from the earlier 20 per cent, Trivedi added.

 

Evera has also been looking for investments to fuel its growth plans. Trivedi said the company is currently in touch with global and Indian investors for debt and equity.

 

“We are in active conversations right now with a few investors to put in more money so that we can expand faster. There is a need for financial muscles to expand, and we are actively talking about both debt and equity. There are global investors, and on the debt side, it is largely banks and NBFCs we are in touch with,” Trivedi said.

 

In June this year, Evera secured $4 million in funding from Mufin Green Finance through a hybrid structure comprising convertible debentures and debt. 

Expansion opportunity

• The deal could help Evera expand and provide lenders with a recovery route
• Evera has already leased 500 BluSmart EVs from various sources
• The company recently launched an hourly rental service in Delhi NCR
• Evera secured $4 million in funding from Mufin Green Finance in June