India’s much-hyped all-electric ride-hailing startup BluSmart has abruptly suspended its services in Delhi-NCR and Bengaluru, leaving thousands of commuters and drivers stranded and raising serious questions about the future of the company.
The shutdown, which caught many users and employees off guard, comes on the heels of a Securities and Exchange Board of India (SEBI) ban on BluSmart’s co-founder Anmol Singh Jaggi and his brother Puneet Singh Jaggi. The two are accused of financial irregularities linked to Gensol Engineering, a company they also co-founded.
EV Dreams Derail Overnight
Founded in 2018 by Anmol Singh Jaggi and Punit Goyal, BluSmart began its journey as Gensol Mobility before rebranding in 2019. With its promise of zero-emission rides and a tech-first approach, the company grew to become a notable name in the mobility space. Operating a fleet of over 8,500 electric vehicles and managing a network of 5,800 charging stations across NCR and Bengaluru, BluSmart claimed to have completed more than 1.45 crore rides over the years.
Its sudden disappearance from the roads has not just stunned loyal customers but also left hundreds of driver-partners without clarity. Many reported receiving no prior notice about the service halt, with some only discovering the news after showing up for work.
As a frequent BluSmart user, the news of the service shutting down hits hard.
Another service one got used to, lost to mismanagement. The clean cars, courteous drivers, and the sheer reliability of the cabs turning up at the right time, stuff that the brand had built over the… pic.twitter.com/UhzeQpDjp2
— Tushar Kanwar (@2shar) April 16, 2025
SEBI Ban Triggers Crisis
BluSmart’s shutdown came a day after SEBI issued an interim order banning the Jaggi brothers from the securities market. The order followed accusations of misappropriating funds at Gensol Engineering. SEBI has also prohibited the duo from occupying any managerial roles within the company while ordering a forensic audit of Gensol’s financials.
In March 2025, Gensol’s credit rating was downgraded to “junk” status by both ICRA and CARE Ratings due to delays in loan repayments. These financial strains appear to have spilled over into BluSmart, which is reported to have delayed salary payments for March.
In an internal communication accessed by IANS, Anmol Singh Jaggi admitted to cash flow problems but assured employees that “all dues will be cleared within April itself.”
Resignations And Rising Doubts
Adding to the turmoil, Arun Menon, an independent director at Gensol, resigned earlier this week. In his resignation, he stated he had “limited value” to add and flagged “past unanswered concerns” regarding the firm’s growing debt burden.
The crisis has also cast doubts on BluSmart’s international expansion plans. In June 2023, the company ventured into the UAE market with a premium all-electric limousine offering. With investor confidence shaken and operational continuity in question, those ambitions now hang in the balance.
As India’s first all-electric cab company comes to a screeching halt, commuters, employees, and the wider startup ecosystem are left watching a cautionary tale of ambition, sustainability, and governance missteps unfold.
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