Amid insolvency battle, BluSmart’s ride-hailing operations face uncertainty as Gensol’s 4,000 leased EVs hang in balance.
Ride-hailing startup BluSmart Mobility and energy firm Gensol Engineering, both from the same promoter group, are caught in a dispute over more than 4,000 leased electric vehicles after Gensol entered insolvency.
The conflict stems from Gensol’s ₹6.63 billion loan default, which pushed the company into insolvency proceedings under the National Company Law Tribunal (NCLT). BluSmart, which depends on cars leased from Gensol for its ride-hailing operations, risks losing access to a large portion of its fleet, threatening its business continuity.
According to industry insiders, BluSmart has been served notices by its resolution professional (RP) regarding the reassignment of cars. Over 50% of BluSmart’s fleet is leased from Gensol, leaving the startup vulnerable if vehicles are redistributed.
Most leased cars were signed under BluSmart Fleet Pvt Ltd, a subsidiary not under insolvency. However, the RP has argued that Gensol’s financing covers thousands of these cars, creating complications for BluSmart’s access to them.
Since BluSmart suspended expansion in April after funding delays, the company has relied on strategic investors and debt financing. Any large-scale disruption in its fleet would severely impact operations, as competitors such as Evera Cabs stand ready to capture market share.
Industry observers say the resolution outcome will determine whether BluSmart can sustain its EV-led business model or face a major setback in its ambitions to lead India’s green mobility sector.
