What BluSmart’s shutdown says about India’s EV dream
At the center of the collapse is a financial scandal involving BluSmart's co-founders.
For a while, BluSmart looked like the future of urban mobility in India with clean rides, no surge pricing, and an all-electric fleet that made Ola and Uber feel like relics. But in April 2025, that future stalled.
The company abruptly shut down operations without warning, leaving around 10,000 drivers and 800 employees in limbo. Bookings were paused, wallets were frozen, and users were told they might get refunds in 90 days, but only if BluSmart's services didn’t resume.
For many, it was a complete blindside.
But behind the scenes, the unraveling had already begun. At the center of the collapse is a financial scandal involving co-founders Anmol and Puneet Jaggi, who also ran Gensol Engineering —the very company BluSmart leased its EV fleet from. According to the Securities and Exchange Board of India (SEBI), about ₹262 crore (~$31.6M) in loans meant for vehicle procurement were siphoned off to fund luxury apartments, foreign travel, and golf gear.
Emmanuel Oyedeji
As investigations deepened, investor confidence evaporated. A planned ₹425 crore ($51.2M) funding round fell apart. Leadership walked out and with BluSmart's credit rating downgraded to junk.
The collapse hit fast and hard. BluSmart had raised ₹1,394 crore ($168M) in funding, was valued at ₹2,920 crore ($352M), operated over 8,700 EVs, and had agreements in place to purchase thousands more from Tata Motors and Citroën. Now, many of those vehicles are sitting unsold, while drivers across Delhi and Bengaluru have taken to the streets in protest, demanding government support or absorption into the upcoming Sahkar Taxi scheme. Some are even calling for the cabs to be handed over directly to them.
BluSmart wasn’t just another startup; it was supposed to lead India’s EV fleet revolution. But its downfall is now a cautionary tale. A business built on climate goals, smart infrastructure, and public trust collapsed under the weight of poor governance.
India’s electric future still holds promise with startups like Ola Electric and Ather Energy still on the scene, but this episode is a reality check. Bold vision is one thing. Lasting impact takes accountability. So far, BluSmart has stayed silent, offering no official explanation for what went wrong.
Oluwajuwonlo Afolabi
