The sudden shutdown of BluSmart Cabs — an electric mobility startup once lauded for its eco-friendly fleet and tech-enabled service — has raised concerns about lapses in corporate governance and the vulnerability of gig economy workers.
Weighing in on the issue, Sanjeev Bikhchandani, founder of Info Edge, which runs Naukri.com, expressed both disappointment as a customer and concern over the broader implications for the sector.
“As a customer, I’m disappointed — the cab services were really good,” Bikhchandani told ANI. “But the business has to be viable. Corporate governance must be sound for any company to sustain.”
His comments follow BluSmart’s suspension of operations in areas across Delhi-NCR, Bengaluru, and Mumbai.
Regulatory heat
The company’s troubles intensified after the Securities and Exchange Board of India (Sebi) barred BluSmart’s cofounders — Anmol Singh Jaggi and Puneet Singh Jaggi — from raising capital, citing alleged irregularities in prior funding rounds. The Sebi order has brought BluSmart’s governance practices under scrutiny, even as the company scrambles to explore strategic alternatives.
“The Sebi report needs to be taken seriously; it was the outcome of a proper investigation,” Bikhchandani added, underscoring the role of regulatory oversight in protecting the ecosystem.
Also Read: BluSmart crisis: Green mobility’s red flag is giving HNIs bond blues
Gig workers in the crosshairs
“The worst hit are the cab drivers,” said Bikhchandani. “They are not well-off and have suddenly found themselves without income.”
While acknowledging the seriousness of the situation, he urged investors and the public to maintain perspective. “There are 1.6 lakh registered startups in India — and if we include unregistered ones, around 7–8 lakh. There will be some bad actors, but 95–98% of startups are honest,” he said.
As ET reported earlier, BluSmart’s operations had significantly declined amid the unfolding crisis involving Gensol Engineering, also promoted by the Jaggi brothers. By early April, the company was operating only around half of the 25,000–30,000 daily rides it had at its peak last year.
Widening fallout
The crisis deepened further this week when Anmol and Puneet Jaggi resigned from their directorial roles at Gensol Engineering — the engineering, procurement, and construction (EPC) firm they co-promoted.
A regulatory probe found that Rs 977.75 crore in loans from state-run lenders IREDA and PFC — earmarked for the procurement of 6,400 electric vehicles — had been misused. Of the sanctioned amount, only 4,704 vehicles were acquired, with over Rs 207 crore reportedly unaccounted for.
Also Read: Gensol promoters quit board; BluSmart begins shutting operations
Weighing in on the issue, Sanjeev Bikhchandani, founder of Info Edge, which runs Naukri.com, expressed both disappointment as a customer and concern over the broader implications for the sector.
“As a customer, I’m disappointed — the cab services were really good,” Bikhchandani told ANI. “But the business has to be viable. Corporate governance must be sound for any company to sustain.”
His comments follow BluSmart’s suspension of operations in areas across Delhi-NCR, Bengaluru, and Mumbai.
Regulatory heat
The company’s troubles intensified after the Securities and Exchange Board of India (Sebi) barred BluSmart’s cofounders — Anmol Singh Jaggi and Puneet Singh Jaggi — from raising capital, citing alleged irregularities in prior funding rounds. The Sebi order has brought BluSmart’s governance practices under scrutiny, even as the company scrambles to explore strategic alternatives.
“The Sebi report needs to be taken seriously; it was the outcome of a proper investigation,” Bikhchandani added, underscoring the role of regulatory oversight in protecting the ecosystem.
Also Read: BluSmart crisis: Green mobility’s red flag is giving HNIs bond blues
Gig workers in the crosshairs
“The worst hit are the cab drivers,” said Bikhchandani. “They are not well-off and have suddenly found themselves without income.”
While acknowledging the seriousness of the situation, he urged investors and the public to maintain perspective. “There are 1.6 lakh registered startups in India — and if we include unregistered ones, around 7–8 lakh. There will be some bad actors, but 95–98% of startups are honest,” he said.
As ET reported earlier, BluSmart’s operations had significantly declined amid the unfolding crisis involving Gensol Engineering, also promoted by the Jaggi brothers. By early April, the company was operating only around half of the 25,000–30,000 daily rides it had at its peak last year.
Widening fallout
The crisis deepened further this week when Anmol and Puneet Jaggi resigned from their directorial roles at Gensol Engineering — the engineering, procurement, and construction (EPC) firm they co-promoted.
A regulatory probe found that Rs 977.75 crore in loans from state-run lenders IREDA and PFC — earmarked for the procurement of 6,400 electric vehicles — had been misused. Of the sanctioned amount, only 4,704 vehicles were acquired, with over Rs 207 crore reportedly unaccounted for.
Also Read: Gensol promoters quit board; BluSmart begins shutting operations
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