India’s ambitious electric vehicle (EV) ride-hailing startup BluSmart is facing a meltdown of confidence, partnerships, and operations. Once hailed as a green disruptor to the likes of Uber and Ola, BluSmart now finds itself grappling with halted operations, failed lifelines, and regulatory scrutiny that could upend its future.
In this article, we will take a closer look at BluSmart’s unraveling crisis—from failed deals with Uber and Refex Group to SEBI’s damning allegations and the company’s uncertain road ahead.
Credits: Money Control
Uber Pulls the Plug: No Deal for 5,000 EVs
In what was seen as a crucial step toward reviving BluSmart’s operations, talks were underway with Uber to integrate 5,000 electric cars from BluSmart’s fleet onto its platform. These EVs were owned by Gensol Engineering, BluSmart’s parent company.
However, the deal has collapsed, according to a report by Mint. Uber reportedly withdrew its interest over concerns about the inflated valuation demanded by BluSmart and the high depreciation of EV assets, which the startup allegedly failed to adequately account for.
Uber’s withdrawal is not just a failed partnership—it’s a reputational hit. For BluSmart, this was more than just a transaction; it was a strategic pivot to become a fleet partner instead of managing a consumer-facing ride-hailing platform. That plan is now in jeopardy.
Refex Group Deal Worth Rs 315 Crore Also Falls Through
Just weeks before the Uber deal unraveled, BluSmart had another chance at revival through a Rs 315 crore deal with Chennai-based Refex Group. The plan involved Refex acquiring 2,997 of BluSmart’s EVs, providing much-needed liquidity to the ailing company.
But that deal, too, fell apart, marking a second major blow to the startup’s turnaround ambitions. With both Uber and Refex walking away, BluSmart is now left scrambling for alternatives—if any still exist.
Loan Complications and Sub-Leasing Restrictions
Underlying these failed deals are serious structural issues. The cars in question were financed via Rs 663 crore in loans from the Power Finance Corporation (PFC) and the Indian Renewable Energy Development Agency (IREDA). These vehicles were then leased to BluSmart.
Legal experts and financial advisors have raised red flags around sub-leasing these vehicles to third-party platforms like Uber. The risk? It may violate the terms of the original financing, potentially triggering loan defaults or regulatory penalties.
In a highly leveraged business like ride-hailing—especially one dependent on expensive EV assets—such constraints could be the difference between survival and collapse.
SEBI Drops a Bombshell: Fund Diversion Allegations
Perhaps the most damaging blow yet came from SEBI (Securities and Exchange Board of India), which issued an interim order accusing BluSmart’s promoters—Anmol and Puneet Singh Jaggi—of misusing company funds.
The allegations include:
- Diverting loan funds meant for EV purchases.
- Buying a luxury apartment in Gurugram’s posh DLF The Camellias.
- Spending Rs 26 lakh on high-end golf equipment.
If proven, these actions could not only derail any future fundraising but also invite criminal proceedings and a freeze on assets—further jeopardizing BluSmart’s already fragile existence.
Operations Stalled in Major Cities
In the wake of financial instability and mounting scrutiny, BluSmart has reportedly halted new ride bookings through its app in most parts of Delhi-NCR, Mumbai, and Bengaluru—its primary operating markets.
For customers who once saw BluSmart as a clean, quiet, and reliable alternative to traditional cab services, this sudden unavailability is a stark reminder of the fragility of startups in capital-intensive sectors like mobility.
Credits: Business Today
What’s Next for BluSmart?
With two failed deals, regulatory heat, and a suspended business model, BluSmart’s future hangs by a thread. Unless it finds a white-knight investor, navigates its legal challenges, and reassesses its financial transparency, the road ahead looks increasingly bleak.
Its fall from grace also serves as a cautionary tale for India’s growing EV ecosystem: ambition must be matched by execution, and funding by responsibility.
