India’s all-electric cab-hailing startup BluSmart has suddenly suspended services in key cities including Delhi-NCR, Mumbai, and Bengaluru. This action was taken just after India’s market regulator, the Securities and Exchange Board of India (SEBI), launched a probe into Gensol Engineering. This publicly listed company shares BluSmart’s co-founders, Anmol Singh Jaggi and Puneet Singh Jaggi.
Riders across these cities have reported that no slots are available on the BluSmart app, with Delhi Airport also issuing an advisory confirming the temporary suspension of the services. Concerns have also been raised over customers’ wallets, as users cannot access or utilise stored funds.
The SEBI has alleged Jaggi brothers for diverting substantial loans from Gensol for personal luxury purchases, including high-end real estate. Following the probe, both co-founders have resigned from their managerial positions at Gensol.
The company disclosed its 2024 revenue in early April, which is around 8.4 billion Indian rupees ($98 million), almost 700 million Indian rupees monthly. The startup also mentioned that its fleet size grew to about 8,700 EVs from the 6,000 EVs it had in early 2024.
Backed by BP Ventures and Mayfield India Fund, the Gurugram-based startup raised $25 million in the last funding round from the Switzerland-based impact fund ResponsAbility, aiming to expand EV charging infrastructure.
