In a bid to revive struggling EV cab-hailing startup BluSmart, investors are offering a $30 million injection—on the condition that co-founder Anmol Singh Jaggi steps down.
Indian electric cab-hailing firm BluSmart may soon receive a $30 million funding boost from existing investors in a bid to revive operations following a sudden shutdown last month. The proposal, currently under discussion, hinges on the resignation of co-founder Anmol Singh Jaggi.
The proposed infusion would be structured as unsecured debt and directed toward settling operational liabilities, including unpaid employee wages. BluSmart reportedly owes around ₹2.5 billion (~$30 million), with ₹500–600 million due to staff. Its 600 employees have not been paid since March.Key stakeholders such as BP Ventures and Swiss impact investor ResponsAbility, who hold pro rata rights, are leading discussions. Both declined to comment publicly. While Jaggi hasn’t formally resigned, he has verbally agreed to step down from the board if he’s granted legal immunity by investors.
The company’s troubles began when it abruptly halted operations after regulatory scrutiny of Gensol Engineering, its primary EV lessor and a firm co-founded by Jaggi. This paralyzed its 8,700-vehicle fleet and stranded both drivers and riders, leading to driver protests in Delhi.The shutdown opened doors for rivals. Evera Cabs has already leased 500 BluSmart vehicles and plans to onboard another 1,000 along with some former BluSmart drivers. Investors, however, are determined to preserve BluSmart’s brand identity and avoid its fleet being absorbed by competitors like Evera or Uber.
Meanwhile, Eversource Capital expressed interest in acquiring BluSmart in a slump sale and merging it with its loss-making fleet operator, Lithium Urban. However, BluSmart’s board rejected the offer due to a steep 60% valuation cut. Separately, Adani Group reportedly explored using BluSmart’s fleet at its airports but has not progressed beyond early-stage talks.Despite governance concerns and an ongoing probe by India’s corporate affairs ministry, BluSmart’s investors are pushing to restart services within three weeks, eyeing renewed strategic interest from players like Eversource, Uber, or Adani.
