BluSmart Suspends Service Amid Market Regulator Probe into Co-Founders
BluSmart, the all-electric cab-hailing startup based in India, has recently suspended its services in several cities as the country’s market regulator initiated a probe into Gensol Engineering, a publicly listed company that shares two of BluSmart’s co-founders.
Previously operating in Delhi-NCR, Bengaluru, and Mumbai, BluSmart no longer displays available slots for riders in these cities. Delhi Airport has also issued an advisory confirming the temporary suspension of BluSmart’s service. Concerns have been raised by affected customers regarding accessing the funds stored in their BluSmart wallets now that the service is unavailable.
The suspension comes shortly after the Securities and Exchange Board of India (SEBI) launched an investigation into Gensol Engineering, where BluSmart’s co-founders, Anmol Singh Jaggi and Puneet Singh Jaggi, hold positions. Allegations were made against the co-founders for redirecting substantial loan amounts for personal use, including purchasing luxury real estate near India’s capital.
In response to SEBI’s orders, the Jaggi brothers have stepped down from their managerial roles at Gensol Engineering. The company stated in a filing to the Indian stock exchanges that the co-founders are no longer involved in the management of the company as per SEBI’s instructions.
Although BluSmart’s service remains unavailable to riders, the company did not communicate any updates to its investors until Wednesday. Investors expressed surprise at the sudden unavailability, suggesting it could be linked to the developments at Gensol Engineering.
Earlier in April, BluSmart reported reaching 8.4 billion Indian rupees ($98 million) in annual recurring revenue in 2024, with a monthly revenue of 700 million Indian rupees. The startup also disclosed an increase in its fleet size to approximately 8,700 electric vehicles, up from 6,000 EVs in early 2024.
BluSmart has garnered support from global investors such as BP Ventures and Mayfield India Fund. The Gurugram-based startup secured $25 million in its last funding round from Switzerland-based impact fund ResponsAbility, with a valuation of $250 million at the time. Reports have suggested that BluSmart may be transitioning into a fleet partner for Uber, as it previously leased its EV fleet from Gensol Engineering.
Despite media speculation, Gensol Engineering clarified in a recent filing that no agreements or discussions regarding mergers, acquisitions, asset sales, or other significant transactions have taken place. Co-founder Anmol Singh Jaggi did not respond to requests for comment, while co-founder Punit K. Goyal shared LinkedIn posts indicating he was impacted by the corporate governance issues surrounding Gensol.
