BluSmart, once hailed as a futuristic, electric alternative to conventional cab services like Ola and Uber in India, is now grappling with a severe financial crisis. If you’ve been following tech news or the finance section on social media, chances are you’ve come across updates about BluSmart’s uncertain future.
From High-Tech Cab Service to Uncertain Future
Originally positioned as a clean-energy ride-hailing solution in metro cities like Bengaluru and Delhi, BluSmart now finds itself unable to fulfill its core service offerings. Although the BluSmart app is still available for download, users report being unable to book rides, access wallet funds, or reach customer support—clear signs of a systemic breakdown.
Is BluSmart Officially Shutting Down?
As of now, BluSmart has not released an official statement confirming a shutdown. However, media reports suggest that the company is moving away from the ride-hailing business model and instead transitioning toward a fleet partnership model, potentially involving Uber. Around 700 to 800 electric vehicles from BluSmart’s fleet are expected to be integrated into Uber’s platform. While no fixed timeline has been disclosed, this move indicates a strategic pivot.
This development comes in the wake of several high-level resignations: BluSmart CEO Anirudh Arun, Chief Business Officer Tushar Garg, and Chief Technology Officer Rishabh Sood all exited the company recently, pointing to internal turmoil and financial distress.
Why Has BluSmart Suspended Services?
The suspension of services is closely linked to an ongoing SEBI investigation into Gensol Engineering, the financial and EV leasing partner of BluSmart. Founded by Anmol and Puneet Jaggi, who also co-founded BluSmart, Gensol is under scrutiny for allegedly misusing over ₹200 crore in government-sanctioned electric vehicle loans.
These funds were intended for the procurement of 6,400 EVs, but only 4,704 were reportedly delivered. The rest of the money was allegedly diverted for personal and luxury expenditures. Shockingly, around ₹25.76 crore was allegedly redirected by Anmol Singh Jaggi to personal accounts and affiliated entities. One notable transaction involved a payment to Third Unicorn, a startup by Ashneer Grover.
As a result, SEBI has barred Gensol and related individuals from participating in the securities market and disqualified the Jaggi brothers from holding executive roles in listed companies. This regulatory crackdown has severely impacted BluSmart’s leadership and operational continuity.
Also Read: EV Charging Startup IPEC Secures $3 Million Funding from Nikhil Kamath’s Gruhas
Impact on BluSmart Users
For regular users in cities like Delhi and Bengaluru, the most immediate concern is the Blu Wallet. Unlike competitors Ola and Uber, BluSmart operated on a prepaid wallet system, where users loaded funds in advance before booking rides. With services now halted without notice, users find themselves unable to withdraw or utilize their wallet balances.
The app’s Help section is currently the only available option for users seeking refunds. To initiate the process:
- Navigate to the Blu Wallet section in the app.
- Respond “No” to the FAQ question, “Does this resolve your issue?”
- This will open a support window where you can request a refund.
Unfortunately, user feedback has been largely negative, with complaints about delays, lack of communication, and an unfriendly refund process.
Conclusion
BluSmart’s fall from grace is a cautionary tale of how internal financial mismanagement and regulatory probes can derail even the most promising startups. For now, users are left with limited options and unanswered questions. Whether the partnership with Uber materializes or not, BluSmart’s brand reputation may take a long time to recover if it ever does.
Check out the Latest Tech News