BluSmart, the electric ride-hailing company that aimed to revolutionise electric mobility in the country, has suddenly suspended new ride bookings through its app in most areas of operating cities such as Delhi-NCR, Bengaluru and Mumbai.
Although the BluSmart app is still available on the Play Store, users are currently unable to choose a time slot or even book a travel date, effectively pausing all services and indicating suspension of new ride bookings.
SEBI’s Findings
This development comes just a day after a serious investigation by market regulator SEBI into Gensol Engineering, an electric vehicle leasing partner and an important financial backer of BluSmart.
On 13th April 2025, SEBI disclosed that Gensol had reportedly diverted funds intended for the purchase of electric vehicles. The company’s promoters and directors, Anmol Singh Jaggi and Puneet Singh Jaggi, were allegedly involved in fraudulent activities and the diversion of funds while participating in the securities market.
SEBI’s probe prima facie concludes that Rs 262 crore — part of a sanctioned loan for EV procurement — was misused, rerouted through related entities, and even spent on personal luxuries.
Source: https://www.timesnownews.com/
Gensol Engineering, which leases electric vehicles to BluSmart, is accused of diverting more than Rs 200 crore meant for EV acquisitions, according to SEBI’s findings.
Gensol Engineering had planned to utilize Rs 663.89 crore from a loan to purchase 6,400 EVs for deployment with BluSmart. However, the company informed SEBI that it had only procured 4,704 electric vehicles by February 2025, falling short of the planned target, indicating a gap in fund utilization and the alleged diversion.
BluSmart was a loot, not a startup.
SEBI has laid it bare: Anmol & Puneet Jaggi raised ₹975 Cr, routed ₹200+ Cr through a car dealer, and funneled crores into companies they privately owned.
Anmol alone pulled out Rs. 25.16 Cr.
•Rs. 6.2 Cr to his mother
•Rs. 3 Cr to his… pic.twitter.com/Am1pfX5Xkz— Narayanan Hariharan (@narayananh) April 16, 2025
Gensol Engineering’s share price has declined by 5 per cent to Rs. 122.68, marking a year-to-date decline of 86.8 per cent.
The findings have sparked significant concerns about BluSmart’s future and long term viability, given the closely linked operations of both companies.
Further adding to the uncertainty, reports from 14th April suggested that BluSmart may completely exit its core ride-hailing business. Instead, the company is now considering a shift towards becoming a fleet partner for its competitor, Uber.
BluSmart’s shareholders have approved a plan to gradually transition its current fleet to Uber over the next few weeks, starting with 700-800 vehicles. The exact timeline for this transition is not yet finalized.
As a result, BluSmart’s services have been affected, leaving users confused and raising concerns about its future in the electric mobility market.
This marks a major setback for the electric cab service that was once seen as a strong competitor to Ola and Uber. With its focus on clean transportation and zero-emission, the company played a crucial role in promoting sustainable mobility in India. BluSmart’s exit would also slow down progress towards sustainable transportation in the country.
Sources have also confirmed that the Uber-BluSmart deal is being re-evaluated. Owing to financial crisis, BluSmart was earlier looking to go for a hybrid model of operations wherein its services would be available on its own app as well as on the app of ride-hailing platform Uber.
About the Company
BluSmart began operations in 2019 as an early player in the Indian EV market, while it was still developing. The company took advantage of the transition towards sustainable transportation in the country by offering cleaner alternatives to traditional ride-hailing.
BluSmart quickly gained attention for its all-electric fleet and commitment to reduce overall carbon emissions. Its clean mobility approach positioned it as a potential competitor to already established companies like Ola and Uber in the ride-hailing industry.
Final Thoughts
BluSmart, once an emerging player in the country’s electric mobility space, has now suspended new ride bookings amidst troubles linked to its important financial partner, Gensol Engineering.
SEBI’s findings revealed that Gensol allegedly diverted more than Rs. 200 crore funds meant for EV purchases, leading to major concerns about BluSmart’s future. Gensol’s stock also dropped significantly in the process.
BluSmart is now considering exiting its core ride-hailing business to become a fleet partner for rival company Uber. This move marks a serious setback for the company and raises significant concerns about the progress of sustainable transportation in the country.
