India’s Uber rival Blusmart appears to be suspending service after an EV loan probe
Blusmart, an all-electric cabhail startup in India, once considered a new rival to Uber, appears to have suspended services in some cities, just like the country’s market regulators. Probes for Gensol Engineering have beguna public company that shares two of the co-founders.
CAB services, which operated in Delhi-NCR, Bengaluru and Mumbai, no longer display slots available to many riders in these cities. Delhi Airport too Advisory has been issued The Blusmart service was temporarily suspended. Some affected customers also raise concerns about accessing money stored in their Blusmart wallets because the service is unavailable.
Sudden unavailability shares Busmart co-founder Anmol Singh Jaggi and Puneet Singh Jaggi, one day after the Securities and Exchange Commission of India (SEBI) began an investigation into Gensol Engineering. Regulators accused the co-founder of redirecting substantial loans for personal use, including purchasing luxury properties outside the Indian capital.
Following the orders from market regulators, the Jagi brothers resigned from their management on Wednesday. “They are not taking part in managing the company as an instruction from Sebi Sabi, but they will be effective immediately,” Jensol said. Submit (PDF) To the Indian stock exchange.
Despite riders not being available, the Blusmart board did not share updates with investors until Wednesday, TechCrunch learned.
“It’s really amazing that the service is not available. It seems like the scuffing effect of what happened with Gensol,” a Blusmart investor told TechCrunch.
Investors said in early April that Blusmart had reached Rs 8.4 billion ($98 million) in annual recurring revenues (ARRs) in 2024, generating Rs 700 million in monthly revenues. The startup also informed investors that its fleet size had increased from 6,000 EVs in early 2024 to around 8,700 EVs.
Blusmart counts global investors, including early backers, including BP Ventures and the Mayfield India Fund. Gurugram-based startup raised $25 million It aims to expand its EV charging infrastructure in its final funding round from the responsiveness of the Swiss-based impact fund. TechCrunch understands that it was valued at $250 million at the time.
Media reports this week suggested that Blusmart is pivoting to Uber’s fleet partners. The startup had an EV fleet lease from Gensol. However, in a recent stock exchange filing, Gensol revealed that “there is “there is no agreement or that there is a discussion of mergers, acquisitions, asset sales, or other significant transactions that have not been disclosed.”
Jaggi, co-founder of Blusmart, did not respond to requests for comment. When contacted, co-founder Punit K. Goyal shared a screenshot of a LinkedIn post by an individual who claims to have been “engaged in a storm” due to issues of Gensol’s corporate governance.