In 2019, an all-electric ride-hailing service burst onto the Indian scene with a bold mission- to transform urban mobility with sustainable, electric vehicles. Co-founded by brothers Anmol and Puneet Jaggi, BluSmart quickly gained traction, capturing significant market share in Delhi and expanding to Bengaluru. Its growth was a testament to the increasing demand for cleaner, eco-friendlier transportation in India’s bustling cities. As it scaled, it attracted top talent, offering a blend of innovation, purpose, and the promise of a better future. With over 8,000 electric vehicles in its fleet, BluSmart positioned itself as a disruptor in India’s ride-hailing market, challenging established players like Uber and Ola.
Fast forward to April 2025, and the narrative around BluSmart has shifted dramatically.
The company that once symbolised innovation now finds itself embroiled in a crisis that has shaken its foundations. Co-founder Puneet Jaggi was detained by authorities amid allegations of financial mismanagement and fund diversion within BluSmart’s parent company, Gensol Engineering. The Securities and Exchange Board of India (SEBI) launched an investigation, barring both Puneet and his brother Anmol Jaggi from holding key positions in listed companies and participating in the securities market.
The allegations? Misusing public funds originally allocated for the purchase of electric vehicles for personal luxuries, including a luxury apartment and expensive golf equipment. SEBI’s investigation and the subsequent forensic audit have revealed a worrying financial picture, with the company’s cash burn rate reaching unsustainable levels. As the crisis deepens, BluSmart has suspended its ride-hailing services, leaving both its drivers and employees in a state of uncertainty.
The Human Cost of the BluSmart Crisis
For BluSmart’s 500 employees, the crisis has been nothing short of a nightmare. Many have not received their March salaries, and with the company’s operations suspended, there is no clarity on when they will be paid next. Employees who once saw themselves as part of a company changing the future of mobility are now grappling with the very real consequences of financial instability.
At the beginning of the month, promises were made regarding the payment of salaries in phases, starting with those in lower pay grades. But these assurances ring hollow for many, as the suspension of services and the ongoing investigation into the company’s financial practices leave more questions than answers. Several senior executives have started looking out. In March, a handful of their higher-ups left the company, including CEO-fleets Anirudh Arun, CTO Rishabh Sood and CBO Tusshar Garg.
For now, BluSmart’s employees wait in uncertainty, hoping for a resolution that will allow them to move forward, with or without the company that once promised to change the future of mobility.
