BluSmart Suspends Ride Bookings Amid SEBI Investigation

Electric ride-hailing service BluSmart has reportedly halted ride bookings in select areas of Delhi-NCR and Bengaluru. This decision comes in light of an ongoing investigation by the Securities and Exchange Board of India (SEBI) concerning Gensol Engineering, a company closely associated with BluSmart.

According to an initial report from Moneycontrol, the app has ceased to allow users to book rides, indicating a likely suspension of services.

Transitioning Services at BluSmart

In the midst of these developments, there are indications that BluSmart may be shifting its focus from the core ride-hailing business to becoming a fleet partner for Uber. This transformation may involve transferring 700-800 electric vehicles to the Uber platform, although no official timeline for this change has been provided.

Funding Progress of BluSmart

BluSmart was actively working on securing $50 million in its Series B funding round. So far, the company has successfully raised Rs 61 crore (approximately $7 million) from 26 individual investors, with additional funding anticipated to follow shortly.

Founding and Operations

Founded in 2019 by Anmol and Puneet Jaggi, along with Punit Goyal, BluSmart operates under an on-demand model. In contrast to competitors like Ola, Uber, and Rapido, the firm offers scheduled pick-up and drop-off services while exclusively utilising an electric vehicle fleet.

SEBI Accusations and Implications

Recently, SEBI has accused BluSmart’s co-founder, Anmol Singh Jaggi, of misusing funds from Gensol for personal expenditures and transferring resources to related entities. As a result, SEBI has prohibited Gensol and associated entities from trading on the securities market and has temporarily disqualified the promoters from holding any directorial or key managerial positions.