On the brink of collapse, India's leading electric vehicle company, BluSmart, faces imminent disintegration.
BluSmart, an Indian electric vehicle startup that promotes cleaner and more affordable transportation, has entered insolvency proceedings. The crisis arose after the co-founder, Anmol Singh Jaggi, was accused by regulators of diverting funds meant for vehicle purchases.
The insolvency proceedings were initiated due to a corporate crisis that has left thousands of electric vehicles out of service. The regulatory ban caused a crisis of confidence and funding that led to the suspension of BluSmart's operations.
BluSmart, initially positioned as an eco-friendly and efficient solution for tomorrow's transportation in India, was founded in 2019 by Anmol Singh Jaggi and Rahul Arya. The startup's business model is based on shared electric vehicles, and it allows passengers to access electric taxis through a mobile application.
The funds, intended for the purchase of electric vehicles for BluSmart's fleet, were allegedly diverted for other purposes, according to an investigation by the Indian securities regulator (SEBI). The SEBI investigation against BluSmart's co-founder, Anmol Jaggi, centers on the allegation of diverting funds from Gensol Engineering for personal benefit.
The insolvency petition for BluSmart was filed by a creditor due to a default on a debt of approximately $150,000. The creditors who filed claims against BluSmart include banks, financial institutions, and suppliers. The judicial administrator will take control of BluSmart's assets, and creditors are invited to submit their claims.
BluSmart has investors that include British oil company BP. The startup focuses on providing eco-friendly and efficient mobility solutions in major Indian cities. The future of BluSmart, one of India's most celebrated startups, is uncertain due to insolvency proceedings.
On April 15, 2023, the SEBI issued an interim order prohibiting Anmol Jaggi and his brother from participating in the capital markets. This regulatory ban has added to the crisis that BluSmart is currently facing.
As BluSmart navigates through this challenging period, it remains to be seen how the insolvency proceedings will unfold and what the future holds for this once-promising electric vehicle startup.
