As the business of the electric ride-hailing startup BluSmart hit the brakes, reports have emerged that climate-focused investment platform Eversource Capital is planning to acquire the beleaguered firm, and the company may resume services in May 2025. Notably, there are few other well-known investors have also shown interest in acquiring a stake in the ride-hailing app.
According to a report by the Business Standard, Eversource has offered to buy BluSmart for Rs 800-Rs 1,000 crore, which would reduce the valuation of the company by at least 60% from its last known valuation of $300 million.
Eversource may reportedly merge its Lithium Urban Technologies with BluSmart and inject about $100 million into the combined entity after the merger.
Eversource Capital is a 50-50 joint venture between Everstone Capital, a private equity firm with a presence in India and Southeast Asia, and UK-based Lightsource BP, a global solar energy developer.
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Notably, Eversource has asked BluSmart’s co-founders Anmol Singh Jaggi and Puneet Singh Jaggi to step down from the board. BluSmart was co-founded by Gensol Engineering promoters Anmol and Puneet in 2019. Anmol holds a 24% stake in the EV ride-hailing company. The Jaggi brothers were also promoter directors of Gensol Engineering.
The ride-hailing app is at the centre of controversy after the Securities and Exchange Board of India (Sebi) alleged that the Jaggi brothers misused funds meant for electric vehicle procurement for personal expenses.
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The company defaulted on non-convertible debentures worth Rs 30 crore.
Gensol took a term loan worth Rs 978 crore from IREDA and PFC between 2021 and 2024, with Rs 664 crore taken for purchasing 6,400 EVs to be leased to BluSmart. Sebi accused the Jaggi brothers of treating Gensol’s finances as a “piggy bank” for personal expenses.
Media reports indicated that the brothers diverted over Rs 260 crore for personal luxury purchases, including high-end apartments in DLF Camellias, expensive golf equipment, travel expenses, etc.
Following the regulatory action, BluSmart halted operations, leaving thousands of drivers in a crisis and raising concerns among customers over refunds for unused ride credits.
The ride-hailing firm has not paid salaries to its 500-plus workforce for more than 45-60 days, a CNBC TV-18 news report said. Before the operations were halted, the drivers were paid on a weekly basis.