India’s electric ride-hailing startup BluSmart, once hailed as a sustainable alternative to traditional cab services, is now grappling with a series of challenges that threaten its very existence.
SEBI Investigation Uncovers Financial Irregularities
The Securities and Exchange Board of India (SEBI) has barred BluSmart co-founders Anmol and Puneet Singh Jaggi from the securities market following allegations of misusing ₹9.78 billion in loans intended for expanding BluSmart’s electric vehicle fleet. Investigations revealed that funds were diverted for personal luxuries, including real estate purchases and extravagant expenses. The co-founders allegedly created a complex web of companies to funnel public money, manipulated documents, and used company credit cards for personal use. Financial Times
Operational Halt and Driver Impact
In April 2025, BluSmart suspended all ride bookings across major cities, including Delhi-NCR and Bengaluru, citing financial constraints. The sudden halt left thousands of drivers without work and raised customer concerns about refunds from BluSmart wallets. The Delhi Airport also announced the service’s suspension. Reuters
Leadership Exodus and Financial Struggle
BluSmart has witnessed a significant turnover in its leadership, with CEO Anirudh Arun, Chief Business Officer Tushar Garg, Chief Technology Officer Rishabh Sood, and Vice President Priya Chakravarthy all exiting the company. These departures coincide with the company’s urgent need to raise capital through asset liquidation, following financial strain and the closure of its Dubai operations. Storyboard18
Financially, BluSmart reported an operating revenue of ₹170 crore in FY23, a significant increase from ₹29 crore in FY22. However, its net loss widened to ₹65.5 crore in FY22 from ₹39.4 crore in the previous year. Business News Today
Potential Transition and Uber Speculation
Amid these challenges, BluSmart is reportedly exploring a shift to becoming a fleet partner for Uber, with shareholders approving a plan to transition its existing fleet. The move is expected to begin with 700-800 cars in the coming weeks, eventually covering its entire fleet of 8,000 EVs. The New Indian Express
While reports have emerged indicating that Uber is in early-stage discussions to acquire BluSmart, the company has categorically denied these acquisition reports, emphasizing its commitment to independent growth. Storyboard18
BluSmart’s journey from a promising electric mobility startup to its current crisis underscores the challenges startups face in scaling operations while maintaining financial integrity. As the company navigates regulatory scrutiny, leadership changes, and financial hurdles, its future remains uncertain.
