On April 17, 2025, users of the electric cab service BlueSmart received an abrupt email: all operations had stopped. No prior notice. No transition plan. Over 8,000 EV taxis were suddenly off the roads in Delhi-NCR, Mumbai, and other regions.
The startup that once promised a greener, smarter future for urban mobility collapsed in a flash.
But what made this worse? The involvement of high-profile celebrities and investors — MS Dhoni, Deepika Padukone, Ashneer Grover, Rajat Gupta, and more — all of whom had put serious money into BlueSmart, believing in its vision.
How Did It Go So Wrong?
BlueSmart wasn’t just another app-based cab service. It had a clean-tech USP, an all-electric fleet, woman drivers, and glowing customer reviews. Backed by ₹168+ crores in funding across 14 rounds and reportedly earning ₹70 crores monthly, it looked bulletproof.
But then came the Gensol scam — the sister company that handled EV leasing.
According to SEBI, Gensol borrowed ₹664 crores to buy 6,400 EVs. But only about 4,700 were purchased. The rest of the money — ₹262 crores — was siphoned off to a related company, Valre Solar Industries, owned by an ex-employee. The funds were allegedly used for luxury apartments, designer watches, international travel, spa treatments — even a ₹26 lakh golf kit.
Founders Anmol and Puneet Jaggi resigned and went off the radar. What followed was chaos: investor confidence tanked, loan channels dried up, and BlueSmart was forced to shut shop.
What’s the Impact?
- Customers lost prepaid wallet balances (some up to ₹10,000)
- Employees vanished from offices post-Holi
- Charging hubs across cities were locked overnight
- Investor money, including from Bollywood and cricket stars, went down the drain
One loyal user tweeted, “I lost ₹9,000 in my BlueSmart wallet. But honestly, I still preferred them over Ola/Uber. Clean, on-time, respectful drivers — they were the best."
OverGreen to the Rescue?
A new name, OverGreen, has started acquiring BlueSmart vehicles and rebranding them. While it’s too early to say if this will revive operations, the transition may save the infrastructure from being scrapped.
Lessons for India’s Startup Ecosystem
This isn’t just about one company. The BlueSmart fiasco has triggered a wave of questions about startup culture, cleantech accountability, and investor responsibility.
Aman Gupta (boAt) called this a wake-up call for founders and VCs alike. Stock market veteran Vijay Kedia urged people to watch for these red flags:
- Founders flaunting wealth without business results
- Continuous dilution of ownership
- Frequent exits of CXOs
- Hype-filled pitches with little substance
And yes — the Jaggi brothers’ ownership dropped from 96% to just 20% in six years. A massive red flag.
Disclaimer:
This article is for informational purposes only and does not constitute legal or investment advice. All details are based on public reports and verified news sources.
