BluSmart Investors Plan $30M Funding for Startup Revival

BluSmart, an Indian electric cab-hailing startup, abruptly halted operations after its co-founder Anmol Singh Jaggi and his brother were implicated in allegations of financial misconduct at Gensol Engineering, their other company. In response, BluSmart's existing investors—including BP Ventures and responsAbility—are in advanced talks to inject $30 million as unsecured debt to cover operational liabilities and unpaid salaries, but this plan is contingent upon Jaggi's resignation and a complete exit of the founding family. The investors aim to buy out Jaggi’s shares, seek loan write-offs from private lenders, and resume services to safeguard their investments and reinstate jobs for drivers and employees. The suspension has left roughly 10,000 drivers jobless, with many protesting in New Delhi, and has stranded over 8,000 EVs, posing risks to both workers and fleet assets. The Securities and Exchange Board of India (SEBI) has barred the Jaggi brothers from market activity due to findings of forgery and fund diversion, further complicating BluSmart’s revival. If the investor-led plan succeeds, it could protect remaining stakeholder interests and potentially return BluSmart’s electric cabs to service.