BluSmart, India’s first all-electric cab-hailing startup, has declared a “暂停” of its services. This includes nationally important Delhi-NCR, Bengaluru, and Mumbai mega metropolitan areas. The company, previously considered the top alternative to Uber, takes a huge blow. Now, it faces the fallout from a federal investigation of its leasing partner, Gensol Engineering.
Operations at BluSmart have been temporarily suspended. This development follows closely on the heels of the Securities and Exchange Board of India (SEBI) initiating an investigation into Gensol Engineering, the company that leases electric vehicles to BluSmart and which is co-founded by Anmol Singh Jaggi and Puneet Singh Jaggi. In the wake of this news, the Jaggi brothers resigned from their executive roles with the company on Wednesday. This sudden leadership shift has left investors and users scratching their heads.
BluSmart originally had an all-electric fleet going into the pandemic. It had increased from 6,000 EVs in early 2024 to something like 8,700 EVs by year’s end. The fast-growing startup recently reported impressive ARR of 8.4 billion Indian rupees—roughly $98 million—for 2024. On top of that, it brought in 700 million Indian rupees in monthly revenues. At its peak, BluSmart reached a staggering valuation of $250 million. They went on to raise a hefty $50 million from their distinguished international investors, including BP Ventures and Mayfield India Fund.
Yet, the upheaval brought about by these recent changes has been incredibly disruptive. With the startup currently displaying zero available space for riders in those impacted cities, its immediate future operations are up in the air. A BluSmart investor expressed concern, stating,
“It is really surprising to us that the service is unavailable. It seems to be a rub-off effect of what has happened with Gensol.”
Gensol Engineering released the following statement regarding the indictment. The electric buggy startup’s recently-created chief financial officer reiterated that the company hasn’t been involved in any secret material deals. The company further expressed regret over the executive turnover at BluSmart, adding,
“They are no longer participating in the management of the Company as per SEBI’s instructions, effective immediately.”
Although these challenges have arisen, BluSmart remains committed to furthering its electric vehicle charging infrastructure. The company is working diligently to continue to ensure its leadership position in a fast-emerging Indian mobility market. The company’s Series C round in October of $25 million from ResponsAbility, a Switzerland-based impact fund, indicates that investor interest hasn’t waned.
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