Crisis-hit EV cab hailing start-up BluSmart may get back on track amid its financial and legal struggles. The Bengaluru-based new-age company is reportedly in talks with two large-scale distressed funds with a focus on climate and mobility sectors to revive its operations, according to a report published by Business Standard.
BluSmart is likely to resume its operations in May, the report said, adding that the deal is contingent to Jaggi quitting the EV company. The possible resumption of cab services may bring relief to several customers, drivers and employees whose employees have been on hold since March.
The company is grappling with mounting operational losses, unsuccessful expansion efforts, and the resignation of key executives, prompting a desperate push to generate cash. Additionally, BluSmart has reportedly started removing its branding from vehicles at its Bengaluru-based Sarjapur hub, preparing to transition them to Uber's network.
What Happened with BluSmart?
A few weeks ago, Refex Industries terminated its agreement to acquire 2,997 electric vehicles from Gensol Engineering, as reported by Inc42. In January, Gensol's EV financing arm, Gensol EV Lease Pvt Ltd, had agreed to sell these 2,997 EV cars, initially leased to BluSmart, to Refex's subsidiary, Refex Green Mobility Limited (RGML).
Additionally, BluSmart reportedly shut down its Dubai operations in mid-March and abandoned plans to expand services in Saudi Arabia.
BluSmart has also faced a significant executive exodus since March this year. CEO Anirudh Arun, CFO Tushar Garg, CTO Rishabh Sood, and Vice President Priya Chakravarthy have all departed. Nandan Sharma, previously a vice president, has been appointed as the new CEO.
BluSmart’s substantial cash burn exceeded Rs 20 crore monthly. Founders Anmol Singh Jaggi and Puneet Singh Jaggi, who hold over 25% of the company, had previously injected significant capital alongside external fundraising. BluSmart operates an all-electric fleet. Uber launched its EV service, Uber Green, in 2023, aiming to deploy 25,000 electric cars through fleet partners like Everest Fleet, Lithium Urban Technologies.
And Uber reportedly initiated discussions with BluSmart Mobility to bolster its presence in India's electric cab sector, focusing on evaluating BluSmart's assets, particularly its electric vehicle fleet.
