In a dramatic turn of events for India’s electric mobility sector, Eversource Capital, a climate-focused private equity firm, has entered advanced talks to acquire BluSmart, the country’s pioneering EV ride-hailing startup. The move comes as BluSmart finds itself entangled in a corporate crisis linked to its sister company, Gensol Engineering. According to reports by Inc42 and CNBC-TV18, Eversource has proposed acquiring BluSmart for INR 800 to 1,000 crore (USD 90 to 120 million), marking a steep 60% drop from the startup’s last known valuation of USD 300 million.
Sources confirm that Eversource’s offer includes assuming BluSmart’s liabilities and injecting a fresh USD 100 million into the merged entity, which will combine BluSmart with Lithium Urban Technologies, another EV mobility venture in its portfolio. Eversource acquired Lithium Urban in 2022 and sees this acquisition as a strategic move to scale operations and consolidate the EV fleet.
BluSmart suspended its services last week, citing financial distress, and promised wallet refunds to customers if operations don’t resume within 90 days. The startup, which operates over 8,700 electric cabs, owes over 5,500 of those vehicles to Gensol Engineering and several leasing partners. SEBI’s recent interim order has barred co-founders Anmol and Puneet Singh Jaggi from directorship in Gensol and securities trading due to fund misappropriation. Eversource has demanded that the Jaggi brothers step down from BluSmart as part of the deal.
Founded in 2018, Eversource is a JV between Everstone Capital and Lightsource BP, managing India’s Green Growth Equity Fund (GGEF) with USD 741 million in AUM. As the sector reels from governance shocks, this potential acquisition could be a lifeline for BluSmart and a pivotal moment for India’s sustainable mobility landscape.
1. BluSmart: India’s EV Ride-Hailing Pioneer in Crisis
BluSmart, founded in 2019 by Anmol Singh Jaggi, Puneet Singh Jaggi, and Punit Goyal, was among the first startups to bring electric mobility to Indian ride-hailing. With its all-electric fleet, BluSmart offered zero-emission rides across Delhi NCR and Bengaluru, catering to environmentally conscious commuters. Customers used its mobile app to book EV rides just like Ola or Uber, but with the promise of zero surge pricing and fully electric cars.
The startup worked on a B2C ride-hailing model while also serving corporates with B2B transport solutions. Its fleet exceeded 8,700 EVs before operations were halted. BluSmart sourced 5,500 cars from its associated entity Gensol Engineering and the rest from leasing partners. These vehicles were supported by in-house charging stations, making BluSmart a vertically integrated clean mobility platform.
2. Revenue, Funding and Founders’ Background
BluSmart’s revenue came from ride fares and corporate partnerships. It focused on unit economics by reducing fuel and maintenance costs with EVs. However, it struggled with profitability amid high vehicle and infrastructure expenses.
The startup raised over USD 180 million across multiple funding rounds. Notable investors include bp Ventures, responsAbility Investments AG, MS Dhoni’s Family Office, Sumant Sinha, Stride Ventures, and Panthera Capital. Despite strong backing, governance issues from its founders tainted investor trust.
The Jaggi brothers are also the promoters of Gensol Engineering, a listed company that provides solar consulting and EPC services. Their experience in energy and mobility was instrumental in BluSmart’s early success but later became a liability as SEBI cracked down on alleged fund misuse.
3. What Triggered BluSmart’s Current Crisis?
The trouble began when SEBI, India’s capital markets regulator, issued an interim order against Anmol and Puneet Singh Jaggi. The order revealed serious fund misuse in Gensol Engineering. Loans worth Rs 97 crore, meant for EV procurement, were rerouted through a complex web of transactions and partially used to purchase a luxury apartment in Gurgaon’s DLF Camellias.
SEBI barred the Jaggi brothers from serving as directors and participating in securities markets. It also froze Gensol’s planned stock split and triggered regulatory probes by the Ministry of Corporate Affairs. Investors started distancing themselves, and trust eroded quickly.
Amid this backdrop, BluSmart suspended its operations in mid-April 2025, halting all cab bookings and informing users that wallet refunds would be processed within 90 days if services didn’t resume.
4. Eversource’s Strategic Rescue Plan
Eversource Capital is a climate-focused private equity platform founded in 2018. It is a 50:50 joint venture between India’s Everstone Capital and the UK’s Lightsource BP. With over USD 741 million in assets under management, it focuses on sectors like renewable energy, e-mobility, circular economy, and energy efficiency.
In 2022, Eversource acquired Lithium Urban Technologies, a B2B electric mobility company offering fleet services to corporates. Lithium operates a smaller fleet than BluSmart but has similar sustainability goals. The acquisition of BluSmart would add scale and complement Lithium’s offerings.
Sources say Eversource has made a non-binding offer of INR 800-1,000 crore and plans to invest an additional USD 100 million post-merger. The firm will also clear BluSmart’s employee dues, vendor payments, and other liabilities.
5. Merger Plans and Cofounders’ Exit Clause
The deal includes a crucial condition: BluSmart cofounders, especially the Jaggi brothers, must exit the company. Anmol Singh Jaggi, who sits on BluSmart board along with Sophia Isabella Nadur, Inderpreet Singh Wadhwa, and Dharmichand Sunil Kumar, will also have to resign.
This leadership cleanse is aimed at restoring stakeholder confidence. It aligns with investor sentiments that demand stronger governance and transparency in climate-tech ventures.
Post-acquisition, BluSmart and Lithium Urban will merge into a single brand before merging with Eversource. Eversource will streamline operations, cut overlapping costs, and expand the merged entity’s presence in metro cities. The goal is to build a scalable, compliant, and investor-friendly EV ride-hailing platform.
6. Industry Impact and What Lies Ahead
The BluSmart crisis has reignited debates around startup governance in India. Investors, regulators, and ecosystem enablers are pushing for tighter due diligence, especially in capital-intensive sectors like EV mobility. The SEBI order also serves as a cautionary tale about the risks of interlinked ventures and promoter overreach.
Eversource timely intervention could set a precedent. If the deal goes through, Eversource will not only revive BluSmart but also signal that distressed assets in the clean-tech space can be salvaged with the right governance and capital infusion.
A final announcement is expected within two weeks, pending due diligence and board approvals.
7. Learnings for Startups and Entrepreneurs
This episode offers several key takeaways for India’s startup ecosystem:
- Strong governance is non-negotiable — Founders must separate personal and professional finances.
- Transparency with investors builds long-term credibility — Especially during crises.
- Having independent leadership ensures operational continuity — It reduces risks when promoters face legal scrutiny.
- Vertical integration is powerful but comes with risks — If one entity falters, the entire chain can collapse.
- Climate-tech and EV ventures attract patient capital — But only if founders uphold regulatory norms.
About The Startups News
The Startups News is India’s leading platform for in-depth startup ecosystem coverage, delivering daily updates on funding announcements, government policies, entrepreneurial journeys, and tech innovations. With a strong focus on humanized storytelling, we bring exclusive insights that matter to founders, investors, and policymakers. Whether it’s breaking funding stories, deep-dive industry analysis, or emerging trends, The Startups News keeps you ahead of the curve. Stay informed, stay inspired — only with The Startups News.
