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Published on
May 8, 2025
5 min read
Investors Plan $30 million in Funding to Restart BluSmart’s Operations
Indian EV ride-hailing startup BluSmart may receive a fresh $30 million investment from its existing investors to restart its services. The funds will be provided in the form of unsecured debt. However, this proposed funding depends on one key condition that co-founder Anmol Singh Jaggi must resign from the company’s board.
According to TechCrunch, the money would be used to pay employee salaries, clear dues, and restart BluSmart’s operations, which were suddenly halted last month.
BluSmart’s Deep Financial Trouble After Service Suspension
BluSmart, once seen as a strong competitor to Uber in the Indian EV market, suspended operations last month. This created financial and legal pressure on the company.
The shutdown caused major disruptions. As ₹50–60 crores ($6-7.2 million) were due in employee payments, around 600 employees didn’t receive their salaries. Approximately ₹250 crore (~$30 million) in dues remained unpaid, which added to the growing dissatisfaction among the workforces.
The EV ride-hailing startup also had a fleet of about 8,700 EVs, which are now sitting unused. Experts warn that keeping vehicles unused for long periods could harm the battery and other parts, potentially reducing their overall lifespan.
Many BluSmart drivers have gone on strike in New Delhi to protest unpaid wages and job losses. However, some drivers may soon find new employment opportunities. Delhi-based EV cab operator Evera Cabs has added 500 BluSmart vehicles leased through lenders and plans to take in 1,000 more vehicles and drivers.
Investors Seek Fast Restart, Watch Strategic Options
BluSmart’s key investors, BP Ventures and Switzerland-based ResponsAbility, have been discussing solutions since last week. While they declined to comment publicly, sources say they want to restart services in the next three weeks. This move would be made to protect BluSmart’s market share and prevent rival firms like Evera and Uber from using its fleet.
Another investor, Eversource Capital (a BP-backed climate investment fund), recently offered to acquire BluSmart through a slump in sales and merge it with Lithium Urban, its own EV fleet business. However, BluSmart’s board rejected the deal, saying the offer valued the company 60% lower than its previous $300 million valuation.
Meanwhile, Lithium Urban is reportedly dealing with its challenges. Sources say it is operating with losses, and many of its EVs are reaching the end of their life. Its founder, Sanjay Krishnan, has also left the company.
There is also interest from Adani Group, one of India’s biggest conglomerates. The company has had early talks with BluSmart’s board, hoping to use the fleet at its airports. While Adani already partners with Uber, the company has shown interest in expanding its EV fleet. However, there’s been no update on those discussions.
Corporate governance issues continue to shadow BluSmart. A government probe into Gensol and BluSmart is still ongoing. The Indian stock market regulator asked Jaggi and his brother to resign from the publicly listed Gensol while starting an investigation. However, this order doesn’t apply to BluSmart, as it is a private company.
What Lies Ahead for BluSmart?
Investors believe restarting operations quickly could help the company attract more support from major players in the Indian EV market, including Uber, Adani, or Eversource Capital.
BluSmart, once a rising name in India’s EV cab-hailing space, now faces one of its biggest tests yet. If the funding comes through and the leadership changes are made, it may still have a chance at a strong comeback.
