BluSmart Taxi Service Journey from EV Hope to Startup Collapse
The Origin and Founding of BluSmart
In the beginning of the year 2019, a trio of entrepreneurs founded BluSmart with a bold mission. Anmol Singh Jaggi, Puneet Singh Jaggi, and Punit K. Goyal were based in Gurugram, and all three had deep roots in renewable energy. Anmol had already taken his solar EPC venture (Gensol Engineering) public in 2019. They focused on addressing two issues: urban pollution and poor cab service quality and saw this as an opportunity to revolutionize ride hailing. Launching an all-electric taxi startup to take on already established giants like Ola and Uber seemed courageous at that time, but it was in fact audacious. They were even questioned by people regarding the same, but the BluSmart team pressed on and were convinced that a clean-mobility platform could fill a market gap that traditional cab services overlooked.
A Unique EV-Based Value Proposition
BluSmart wasn’t just another ordinary ride hailing app. It placed itself as a climate-conscious advocate and pulled forward a customer centric movement. It was also India’s first 100% electric cab fleet service that operated its own fleet of electric vehicles rather than relying on driver-owned cars. In no time it started enforcing higher service standards. Furthermore, riders quickly noticed the difference: no more last-minute driver cancellations or unpredictable surge pricing. BluSmart rides were super convenient- it was in a quiet, clean EV driven by a trained and salaried driver. They even went further ahead and provided niceties like bottled water and mints in its cars, delivering a premium feel at competitive rates.
Additionally, its promise of “no surge, no cancellations” won the hearts and the loyalty of professionals and environmentally conscious riders present in Delhi NCR and Bengaluru.
Growth Trajectory and Milestones
- Jan 2019: Founded in Gurugram, BluSmart partners with Mahindra to launch its first EV fleet.
- 2019-2020: Raises $3M angel funding and expands services in Delhi NCR.
- 2020-21: Partners with Jio-BP and Tata Motors, secures more EVs, and launches intercity rides.
- May 2022: Raises $25M in Series A; expands to Bengaluru.
- 2023: Reports ₹400 crore revenue run rate; fleet surpasses 5,000 EVs; launches in Mumbai and Dubai.
- Early 2024: Adds solar-powered charging with Tata Power; crosses 25M rides.
- Late 2024: Introduces “Assure” leasing model for drivers and seeks more funding, as reported by Franchise India.
By early 2025, BluSmart was still one of the world’s largest EV ride-hailing services with nearly 8,700 electric cabs. The company had nearly raised ₹1,000 crore in funding and was successful in establishing and building a loyal user base. Unfortunately, the actual trouble loomed behind the scenes.
The Collapse: What Went Wrong?
1. Fraud Allegations
The Securities and exchange board of India uncovered some secrets. SEBI found out that Anmol and Puneet Jaggi diverted funds from Gensol Engineering which were meant to buy EVs for BluSmart into personal assets. Out of 6,400 cars only 4,704 cars were actually bought. As a result of which, SEBI barred them from directorships and markets, and this of course triggered investor panic.
2. Cash Burn and Defaults
BluSmart had a strong revenue growth, despite that it posted losses of ₹216 crore in financial year 2023. Moreover, it had already defaulted on a ₹30 crore bond in early 2025 while they were trying to raise ₹425 crore more. The scandal just ensured that no investors came forward.
3. Leadership Exodus
The result of SEBI’s action? In just a few days, the CEO, CTO, and board members resigned. No one was left to lead a turnaround.
4. Abrupt Shutdown
Subsequently, on April 17, 2025 BluSmart without any notice suspended all of its bookings. Which led to customers losing access to their wallet funds, and over 15,000 drivers were left jobless overnight. And there was an obvious social media outrage and confusion.
5. Strategic Overreach
There was no room for question if BluSmart’s asset-heavy model (owning EVs) were hard to scale. It was quite obvious that they were. There were various factors such as delays in getting enough EVs, over-expansion to Dubai and Mumbai, and mounting debt that made the model unsustainable.
Lessons for Startup Founders
- Integrity is non-negotiable: A great product/ idea cannot save a startup from poor governance.
- Sustainable scaling matters: Rapid growth has no value without financial discipline. No financial discipline is a recipe for disaster.
- Choose your model wisely: Asset-heavy businesses require stable capital and at the same time airtight execution.
- Diversify dependencies: Too much dependence on related entities (like in this case with Gensol) created conflict and risk.
- Protect customer trust: In this case, the wallet funds were frozen without clarity, thus damaging goodwill irreparably.
What’s Next?
1. Rescue Possibility
There’s a chance for mergers and acquisition here. Private equity firm Eversource Capital may acquire BluSmart and thereafter merge it with Lithium Urban Technologies. It’ll have to inject new capital, but all this is going to be possible only if the founders step away completely.
2. Uber’s Opportunity
Uber may take advantage of BluSmart’s fleet or replicate its EV model. All of this was already in talks even before the collapse.
3. Fire-Sale
Worst case scenario, if no deal is reached, BluSmart’s fleet and charging stations may be sold off in parts.
4. Industry Impact
This failure is a wake-up call for India’s EV and startup ecosystem. It shows us the perils of innovation without accountability.
While BluSmart’s EV taxi service stumbled due to governance issues, other Indian innovators like Saurabh Rai of Arahas are pushing sustainable tech forward with sharper focus and cleaner execution.
