BluSmart App Goes Down after SEBI Probe

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?

1. EV Fleet Transition: Lenders are selling off 1,500–2,000 BluSmart EVs to recover loans
2. New Operator Onboard: Evera Cabs has acquired ~500 EVs and rehired some drivers
3. 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.