Eversource set to buy EV hail cab startup BluSmart, but conditions apply

Investment firm Eversource Capital is in talks to acquire BluSmart, a Gurugram-based e-vehicle ride-hailing startup, in a ₹850 crore ($102 million) deal.

The Eversource Capital deal hinges on the exit of BluSmart co-founders Anmol Singh Jaggi and Puneet Singh Jaggi, said an Inc24 report. The deal comes at a steep discount to BluSmart’s earlier $300 million valuation, a clear sign of the damage done by the recent crisis linked to its sister company, Gensol Engineering.

Merger with Lithium Urban

Sources told The Federal the acquisition would result in BluSmart merging with Lithium Urban Technologies, a portfolio company of Eversource, followed by a $100 million capital infusion to stabilise and scale the new entity.

In an attempt to contain the fallout, BluSmart has promised to return wallet balances within 90 days if operations don’t resume. But the damage to its reputation—and to public trust—is hard to reverse.

Eversource, a climate-focused investment platform backed by Everstone Capital and Lightsource BP, is expected to take a final call on the transaction within two weeks.

Also read | EV player Gensol flounders as promoters, directors resign after SEBI probe

Eversource has also apparently made it clear that the Jaggi brothers must go. As co-founders and board members of BluSmart, their departure is apparently non-negotiable. The two are currently under investigation by SEBI for alleged financial misconduct at Gensol.

Recent SEBI order

A recent SEBI order has already barred them from holding directorial or managerial roles in any listed companies and from participating in the securities market. The allegations—diversion of funds, misuse of loans, and governance failures—have cast a long shadow over both Gensol and BluSmart.

BluSmart's troubles snowballed after SEBI accused Gensol of misusing a significant portion of a Rs 900 crore loan, funds that were supposed to be used for procuring EVs. Investigators found that only 4,704 of the 6,400 planned vehicles were actually acquired.

A chunk of the money—Rs 262 crore—was allegedly siphoned off to buy luxury property in Gurugram’s DLF Camellias. These transactions, routed through related entities, trace back to the Jaggis.

MCA launches probe

The Ministry of Corporate Affairs (MCA) has also launched an independent probe into Gensol Electric’s filings and financials, suggesting that the fallout could deepen.

Earlier reporting had highlighted how Gensol’s governance crisis triggered a mass resignation of its independent directors. SEBI’s own assessment described a “complete breakdown” in internal controls, accusing the promoters of treating company funds like their personal piggy bank.

Since the beginning of the year, Gensol’s stock has lost more than 80% of its value—over 70% of that evaporated in just two weeks.

Services suspended, drivers stuck

BluSmart, too, has taken a hit. Ride-hailing services have been suspended; drivers without work and customers have gone online to request refunds for unused ride credits. Several top executives have quit amid the uncertainty.

Also read | EV player Gensol to face corporate affairs ministry probe for 'fund diversion'

In an attempt to contain the fallout, BluSmart has promised to return wallet balances within 90 days if operations don’t resume. But the damage to its reputation—and to public trust—is hard to reverse.

Once a poster child for clean mobility in India, BluSmart had a star-studded cap table featuring names like MS Dhoni, Deepika Padukone, Sumant Sinha, BP Ventures, and Panthera Growth Partners. Its fleet was one of the largest in the country, with over 8,700 vehicles, including around 5,500 supplied by Gensol.

Gensol Engineering shares hit a fresh 52-week low and were locked at the 5 per cent lower circuit at Rs 111.65 on the BSE on Monday (April 21) morning, extending their losing streak to eight consecutive sessions.