Paris-based carpooling app BlaBlaCar hopes to grow its service in countries like Brazil, Mexico and India after a disappointing pandemic period.
ADVERTISEMENTBlaBlaCar has secured €100 million in bank loans to acquire new firms and to grow its business internationally.
At its inception, the app was designed to link up drivers and passengers travelling along the same route, but since 2019, BlaBlaCar also operates a bus service.
With its new funding, the firm hopes to expand both its carpooling and bus operations in countries where it already has a presence - such as Brazil, Mexico and India.
In 2023, Brazil became BlaBlaCar’s leading country for carpooling activity, although the firm has a presence in 21 nations.
"This €100 million of credit will enable us to accelerate our growth, while we are currently exploring several acquisition opportunities,” CEO and co-founder Nicolas Brusson, said.
“Alongside our investments in innovation, our acquisition strategy is contributing to the faster deployment of different transport offerings, confirming our leadership in the markets where we operate," he added.
BlaBlaCar has now been profitable for 24 months straight, and last year, annual sales grew by 29%.
The number of passengers who reserved a trip on the app reached 80 million, an annual increase of 23%, which brought the firm’s turnover to €253 million.
These positive signs of growth follow a difficult pandemic period for BlaBlaCar.
In 2021, the company still brought in €97 million, but carpooling activity was reduced due to successive lockdowns and restrictive sanitary guidelines.
Before the pandemic, BlaBlaCar did discuss the possibility of an IPO, which would allow public investors to buy a slice of the firm, although this plan is now on hold.
Going forward, the firm has also stressed that climate ambitions remain central to its growth strategy.
“It is clearer than ever that to limit spending, reduce our dependence on fossil fuels and reduce our carbon footprint, our travel habits must change,” said Brusson.
“Shared mobility is part of the solution: BlaBlaCar has and will continue to bring this vision to everyone, individuals, companies, governments, and other stakeholders in the transition towards more sustainable and inclusive mobility.”
BlaBlaCar has claimed that by reducing the number of vehicles on the road its platform saved 2 million tonnes of CO2 in 2023.
