BluSmart, an Indian electric cab-hailing startup previously considered a potential competitor to Uber, has halted operations in major cities, including Delhi-NCR, Bengaluru, and Mumbai. This development comes amid a probe by India’s market regulator, the Securities and Exchange Board of India (SEBI), into Gensol Engineering, a publicly traded company linked to two of BluSmart’s co-founders, Anmol Singh Jaggi and Puneet Singh Jaggi. The cessation of service left many customers unable to access rides, raising concerns about funds held in BluSmart wallets.
The suspension of service follows SEBI’s allegations that the Jaggi brothers misappropriated significant loan amounts for personal expenditures, including luxury property investments near the capital. As a result of the investigation, both co-founders have resigned from their managerial roles. Gensol confirmed this in a filing to the stock exchanges, noting that they are no longer involved in the company’s management as per SEBI directives.
Despite the sudden service outage, BluSmart’s board failed to update its investors until the developments were reported by TechCrunch. One investor expressed surprise at the service’s unavailability, indicating it might be a fallout from the ongoing issues with Gensol. Earlier this year, BluSmart reported achieving an annual recurring revenue of ₹8.4 billion (approximately $98 million) for 2024, with a monthly revenue of ₹700 million and a fleet expansion to approximately 8,700 electric vehicles.
BluSmart has received backing from notable global investors, such as BP Ventures and Mayfield India Fund, and secured $25 million in its last funding round from ResponsAbility, a Switzerland-based impact fund, positioning itself for growth in electric vehicle charging infrastructure. At that time, the startup’s valuation was reportedly around $250 million.
Recent media speculation suggested that BluSmart was considering pivoting to serve as a fleet partner for Uber. However, Gensol has denied entering into any discussions regarding mergers, acquisitions, or any undisclosed transactions in its stock exchange communication.
Co-founder Anmol Singh Jaggi did not respond to inquiries for comment, while co-founder Puneet K. Goyal shared social media posts indicating he felt ensnared by the corporate governance issues facing Gensol.
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