What Happened to BluSmart? A Layman's Guide to the Electric Taxi Controversy
BluSmart, India's electric ride-hailing startup, has suspended operations after allegations surfaced that its co-founder, Anmol Jaggi, misused funds intended for electric vehicle purchases. The Securities and Exchange Board of India (SEBI) barred Jaggi and his brother from the securities market, prompting BluSmart to halt services and explore transitioning its fleet to Uber.
4/30/20252 min read
BluSmart, India's leading electric ride-hailing company, has recently been at the center of a major financial scandal. Once celebrated for its eco-friendly services, the company has faced serious allegations that have led to its suspension. Let's break down what happened in simple terms. (EV ride-hailing BluSmart to raise $50 million funding at $335 million valuation: Report, India's BluSmart, rival of Uber, suspends operations after co-founder probed)
🚖 What Was BluSmart?
BluSmart was a startup offering electric vehicle (EV) taxi services in major Indian cities. Unlike traditional cabs, all of BluSmart's vehicles were electric, making it a popular choice for environmentally conscious commuters. By 2024, the company had expanded its fleet to over 8,500 EVs and had completed more than 20 million rides . (EV cab company BluSmart starts ..., EV-ride hailing platform BluSmart ..., BluSmart achieves 77% GMV growth in first half of FY25 - The Hindu BusinessLine)
💰 The Allegations
The trouble began when India's securities regulator, SEBI, accused BluSmart's co-founder, Anmol Jaggi, of misusing funds. These funds were meant for purchasing electric vehicles. Instead, Jaggi allegedly used the money for personal luxuries, including a $5 million apartment and a $30,000 golf set . SEBI also claimed that Jaggi and his brother created a complex web of companies to divert public money . (India's BluSmart appoints Grant Thornton for a forensic audit, sources say, India's BluSmart, rival of Uber, suspends operations after co-founder probed, End of the road for India's BluSmart?)
🛑 What Happened Next?
As a result of these allegations, BluSmart suspended its operations. Thousands of drivers were left without work, and customers were concerned about refunds from BluSmart wallets . The company appointed Grant Thornton to conduct a forensic audit to investigate the financial discrepancies . (India's BluSmart, rival of Uber, suspends operations after co-founder probed, India's BluSmart appoints Grant Thornton for a forensic audit, sources say)
📉 Impact on the Company
The scandal has had a significant impact on BluSmart's financial standing. Gensol Engineering, an affiliate company linked to BluSmart, saw its stock price drop nearly 90% in 2025. BluSmart's board is now under pressure to restore investor confidence and address the financial irregularities . (India's BluSmart appoints Grant Thornton for a forensic audit, sources say)
🔍 Business Terms to Know
Forensic Audit: A detailed examination of financial records to detect fraud or mismanagement. (India's BluSmart appoints Grant Thornton for a forensic audit, sources say)
Securities Regulator (SEBI): The government body responsible for regulating the securities market in India. (India's BluSmart appoints Grant Thornton for a forensic audit, sources say)
Gross Merchandise Value (GMV): The total sales value of goods or services sold through a company's platform.
Equity Funding: Raising capital by selling shares of the company to investors.
Development Financial Institutions (DFIs): Institutions that provide long-term capital for economic development projects.
🔄 What's Next for BluSmart?
BluSmart's future remains uncertain. The company is cooperating with the ongoing investigations, and the outcome will determine its ability to resume operations. For now, BluSmart's story serves as a cautionary tale about the importance of financial transparency and ethical business practices. (End of the road for India's BluSmart?, India's BluSmart appoints Grant Thornton for a forensic audit, sources say)