EV-taxi startup BluSmart has unexpectedly halted ride bookings on its app across Delhi-NCR, Bengaluru, and Mumbai. This follows a SEBI investigation into its affiliate company, Gensol Engineering, involving alleged misappropriation of funds. Here’s a detailed look:
🛑 What Happened & When?
- On April 16, 2025, BluSmart temporarily disabled ride bookings—no new rides can be scheduled on the app.
- Customers were informed that if services didn’t resume by May 7, refunds from their BluWallet balances would be processed within 90 days
💰 Why the App Crashed
- SEBI’s probe into Gensol Engineering—BluSmart’s main leasing partner—found that ₹262 crore+ of EV-loan funds were diverted to buy a luxury apartment, golf sets, and other personal luxuries
- SEBI barred co-founders Anmol and Puneet Jaggi from managing Gensol, freezing operations in both companies
🚗 Impact on Riders & Drivers
- Riders: Unable to book rides, accessing wallet balances is a major concern
- Drivers & Employees: Over 10,000 drivers and ~800 employees have been left stranded without work or clear next steps
🏗️ What Happens Next?
- EV Fleet Transition: Lenders are selling off 1,500–2,000 BluSmart EVs to recover loans
- New Operator Onboard: Evera Cabs has acquired ~500 EVs and rehired some drivers
- RBI Audit on Wallets: The RBI is reviewing e-wallet rules to prevent future crises
🔍 Why This Matters
- Consumer Trust at Stake: Sudden shutdowns hinder confidence in EV-based ride apps.
- Regulatory Wake-Up Call: SEBI and RBI interventions highlight the need for stricter oversight in fintech and EV leasing.
- Industry Ripple Effect: Competing platforms like Ola, Uber, and Evera benefit from BluSmart’s collapse—but also bear increased operational burdens.
🔭 Looking Ahead
- Will BluSmart resume? The app remains inactive since mid-April; no official comeback timeline.
- Full driver absorption? Evera’s partial integration hints at a path forward; broader consolidation may follow.
- Regulatory reforms: RBI is working toward e-wallet safeguards, while SEBI initiates corporate governance reviews.
