BluSmart's Bumpy Ride: Inside Anmol Jaggi's Fund Diversion, Gensol's Crisis & Potential Sell Off

BluSmart, the blue-eyed child of the cab ride-hailing world, has now found itself in the spotlight of the EV landscape after Ola Electric chaos. At the heart of this turmoil is the start-up’s tie with Gensol Engineering, a publicly listed solar engineering, procurement, and construction (EPC) company, which is already facing liquidity crunch.

Until last year, Gensol was BluSmart’s largest fleet supplier — and BluSmart, in turn, was Gensol’s biggest customer. Now, as Gensol scrambles to raise Rs 600 crore to address its mounting challenges, it has also announced a 1:10 stock split, potentially putting further pressure on its already tumbling share price.

What exactly went wrong with BluSmart? Is Gensol Engineering only responsible for its downward spiral? Let’s understand the deep-rooted connection between the two companies and the circular fleet journey of BluSmart.

The BluSmart–Gensol Connection

BluSmart Mobility and Gensol Engineering are closely intertwined through shared top leadership and business operations. Both the companies were cofounded by siblings --- Anmol Singh Jaggi and Puneet Singh Jaggi --- in Gurugram. Even initially, BluSmart was operated under the name of Gensol Mobility before being spun off as a separate entity.

Their partnership began around BluSmart’s inception in January 2019. Gensol used to manage BluSmart’s operations by financing and owning electric vehicles. These EVs were then leased to BluSmart for its ride-hailing services.

Some media reports indicated that Gensol’s balance sheet was used to build the business of BluSmart, which is a privately owned company. In FY24, Gensol spent over Rs 500 crore to support BluSmart, which included Rs 148 crore loans to three BluSmart subsidiaries.

In short, BluSmart relied on Gensol’s resources to build its EV fleet. Hence, the downfall of one player inevitably shapes the fate of the other. Media report stated that Gensol’s balance sheet was used to build the business.

Gensol Engineering Downfall

About a month ago, their partnership has come under scrutiny. Gensol faced financial and regulatory challenges like credit downgrades, debt concerns, and allegations of financial misreporting. The rating agencies like CARE Ratings and ICRA downgraded the company’s borrowings to default as lenders flagged issues in debt repayments.

ICRA even alleged that the company falsified its financial statements. However, the company rejected this claim. This has led to the sell off in Gensol shares, which also reduced its market capitalisation and share price. As per BSE, Gensol share price was Rs 1,125.75 on its 52-week high day. But today, its share price has nosedived to Rs 123.65 apiece, reflecting over 80% decline in the calendar year 2025 so far.

The downgrade raised concerns about the company’s financials, also putting in spotlight a deal to sell its electric vehicle fleet to Refex Green Mobility, a transport solutions company. The deal involved Refex buying Gensol’s 2,997 electric cars and taking over the EPC firm’s Rs 315 crore loan.   

This has sent shockwaves across the industry, making investors worried BluSmart’s future including its rumoured IPO and prompting the EV ride hailing start-up to reconsider its business model.

BluSmart’s Pivot: Fleet, Rides, Fleet

If we closely look at BluSmart’s journey, then it was launched as a fleet operator in 2019 when it listed several electric vehicles on Uber. But in the same year, it also launched its ride-hailing platform. And in 2022, the start-up placed an order for 10,000 EVs with Tata Motors.

The next year, it also raised $50 million from various investors to expand its ride-hailing services. It is backed by BP Ventures, responsAbility Investments AG, Sumant Sinha, MS Dhoni Family Office, Survam Partners, Mayfield India Fund, 100Unicorns, JITO and Green Frontier Capital.

Besides VCs, promoter group have also significantly invested in the company. As per Tracxn data, the start-up has raised more than $150 million in equity and debt funding since its inception. It was even said that BluSmart which is focused on energy, infrastructure and mobility network, is going to challenge cab services majors like Uber and Ola.

BluSmart has a fleet of over 8,000 electric vehicles, which are largely sourced from Tata Motors and MG Motor. According to media reports, about two-thirds of the BluSmart fleet comprises of electric vehicles leased from Gensol.

Apart from fleet operations and ride hailing business, the start-up also entered the charging infrastructure arena --- the biggest hurdle of EV adoption across the country. And BluSmart came up with Charging Superhubs spanning 1.3 million sq ft to solve this problem for Indians. Currently, the company owns and operates more than 4,000 charging stations.

But the Gensol Engineering debt crisis forced the cab start-up to exit its core business and transition itself only as a fleet operator of rival Uber. Its shareholders have approved a plan to transition its fleet from its platform to Uber over the few weeks, “starting with 700-800 cars in phases”, The Economic Times report said.

It added that BluSmart will wind up its own ride-hailing business once the transition is complete. And it seems like the plan is being executed now. MoneyControl reported that the start-up has halted new ride bookings through its app in parts of Delhi-NCR and Bengaluru. The app is still available on the Play Store but users are not able to make bookings.

BluSmart diversified beyond ride-hailing with bold ambitions in the mobility network --- but was its fate solely tied to Gensol’s moves, or did it take any misstep on its own?

Gensol Was Not Alone

It was not only Gensol responsible for BluSmart’s fall. There could have been two other factors behind this --- the start-up’s own troubles and Anmol Jaggi. The ride-hailing platform burned cash over Rs 20 crore monthly. It has also defaulted on Rs 30 crore worth of bonds in the early days of February 2025 due to cash crunch. However, the company later repaid all its debts.

In addition, BluSmart also made an attempt to raise $50 million earlier this year but it failed to secure the fresh capital, ET reported. Amid the cash crunch due to its Gensol’s crisis and its own flaws, the start-up also delayed March salary payments and witnessed a number of high-level exits in the past few months. These include CEO Anirudh Arun, CFO Tushar Garg, CTO Rishabh Sood and Vice President of Experience Priya Chakravarthy.

On the other hand, the latest interim order by the Securities and Exchange Board of India (Sebi) also turned spotlight on Anmol Jaggi’s luxury buy reportedly from funds availed by Gensol as loan.

In September 2022, the solar consultancy firm received a loan amount of Rs 71 crore from Ireda, an NBFC for promoting green financing, in its GEL Trust and Retention Account IREDA Limited. The loan was reportedly taken to procure electric vehicles. Another Rs 26 crore was transferred to the Trust account from an internal account, raising the amount to Rs 97 crore.

The order stated that Jaggi diverted funds to purchase an apartment in The Camellias in DLF Gurgaon, had Rs 1.86 crore worth of dirhams in possession, bought golf gear worth ₹26 lakh, and indulged in spa sessions with bills reaching lakhs.

The Sebi document stated that Jaggi diverted nearly Rs 25.76 crore of BluSmart's company funds for personal and family use, including lavish spending on credit card, spa sessions, watches, a golf set, and more. As a result, the market regulator barred Gensol and its promoters from the securities market --- the latest blow to the company after credit downgrades by rating agencies, liquidity crunch, and cancelled deal for EV assets transfer.

Interestingly, the start-up witnessed over Rs 390 crore in revenue in the financial year 2024 as compared to Rs 160 crore in FY23.

Uber May Become Saviour

Uber may become a savior for BluSmart as reports suggest that it may get acquired by the ride-hailing major. Currently, the acquisition discussions are in initial stage. If the deal progresses, it might not just rescue BluSmart but also deepen Uber’s footprint in Indian mobility landscape.

“Uber works with a range of fleet operators and routinely engages with third parties to enhance mobility access for riders and earning opportunities for drivers. We have no updates to share at this time,” an Uber spokesperson had said as quoted by media reports. Additionally, the start-up is also seeking a $15-20 million investment from Uber.

The transition is being shaped not just by financial strain, but also by strategic realignment. BluSmart has started scaling back its international ambitions too, including the recent closure of its Dubai operations.

The interdependency of the two companies on each other has raised governance concerns among the investors. They are now calling for greater transparency in the two companies’ operations and a need for disclosing the terms of lease and financial agreements between them. This scrutiny comes at a time when India’s ride-hailing landscape is undergoing a major shake-up, with players like Rapido gaining ground as others lose momentum.

While BluSmart’s saga raises questions on India’s mobility dream and the company’s sustainability, the start-up’s cofounder Punit K Goyal seems optimistic about the future. “BluSmart has redefined mobility in India and will always be remembered as the poster boy of electric mobility in the country. We’ve worked tirelessly to build India’s most trusted mobility brand—and we remain committed to this journey. The road head is more exciting,” he said in a LinkedIn post.

But as Sameer Parab, Senior Manager, Growth Advisory at Aranca, puts it—one company’s downfall can be another’s opportunity. BluSmart’s trajectory offers a cautionary tale and a playbook. He said the lessons are clear for new entrants: deliver consistently great service, stay financially lean, and build a model that benefits both drivers and riders. In the end, the future of mobility in India may depend not just on bold vision—but on balanced execution.