BluSmart, India’s all-electric cab-hailing startup that was as soon as seen as an rising rival to Uber, seems to have suspended service in some cities simply because the nation’s market regulator launched a probe into Gensol Engineering, the publicly listed firm that shares two of its co-founders.
The cab service, which had been working in Delhi-NCR, Bengaluru, and Mumbai, now not exhibits obtainable slots to many riders in these cities. Delhi Airport additionally issued an advisory that BluSmart’s service had been briefly suspended. Some affected clients have additionally raised considerations about accessing the cash saved of their BluSmart wallets now that the service is unavailable.
The sudden unavailability comes only a day after the Securities and Trade Board of India (SEBI) launched an investigation into Gensol Engineering, which shares BluSmart’s co-founders, Anmol Singh Jaggi and Puneet Singh Jaggi. The regulator accused the co-founders of redirecting substantial mortgage quantities for private use, together with shopping for luxurious actual property on the outskirts of India’s capital.
Following the market regulator’s orders, the Jaggi brothers stepped down from their managerial positions on Wednesday. “They’re now not collaborating within the administration of the Firm as per SEBI’s directions, efficient instantly,” Gensol stated in its submitting (PDF) to the Indian inventory exchanges.
Regardless of its unavailability to riders, the BluSmart board didn’t share any updates with its traders till Wednesday, TechCrunch has discovered.
“It’s actually shocking to us that the service is unavailable. It appears to be a rub-off impact of what has occurred with Gensol,” a BluSmart investor advised TechCrunch.
The investor stated that in early April, BluSmart disclosed that it hit 8.4 billion Indian rupees ($98 million) within the annual recurring income (ARR) in 2024, producing 700 million Indian rupees in month-to-month income. The startup additionally knowledgeable traders that its fleet measurement grew to about 8,700 EVs, up from the 6,000 EVs it had in early 2024.
BluSmart counts international traders, together with BP Ventures and Mayfield India Fund, amongst its early backers. The Gurugram-based startup raised $25 million in its final funding spherical from Switzerland-based influence fund ResponsAbility, aiming to broaden its EV charging infrastructure. TechCrunch understands that it was valued at $250 million on the time.
Media experiences this week recommended BluSmart was pivoting right into a fleet companion for Uber. The startup had its EV fleet on lease from Gensol. Nonetheless, Gensol clarified in its current inventory alternate submitting that it “has not entered into any settlement neither is it in discussions for any merger, acquisition, asset sale or some other important transaction that has not been disclosed.”
BluSmart co-founder Jaggi didn’t reply to requests for remark. When contacted, co-founder Punit Ok. Goyal shared screenshots of LinkedIn posts by people claiming he was “caught within the storm” as a result of alleged company governance points with Gensol.
