BluSmart EV Ride-Hailing Website Domain Listed for Sale After Shutdown

The domain name "blu-smart.com" of the now-defunct electric ride-hailing business BluSmart is for sale. A cursory examination of the BluSmart website showed that users are taken to a parked page indicating that the domain is available for purchase. The development follows a string of issues that the business was experiencing.

Anmol Singh Jaggi and Puneet Singh Jaggi, cofounders of BluSmart and promoters of Gensol, were found guilty in April by markets regulator SEBI of misusing business funds in a "fraudulent manner". According to the regulator's judgement, Gensol attempted to deceive investors, lenders, credit rating agencies (CRAs), and SEBI by submitting fraudulent conduct letters purportedly from its lenders.

Additionally, SEBI prohibited Gensol Engineering's promoters from serving as directors or other important managers of the struggling business. BluSmart then stopped offering taxi booking services, making the app available but inoperable.

In June, BluSmart’s App Stopped working

Users reported that the app broke upon starting and displayed the warning "something went wrong!" on both iOS and Android smartphones by June, at which point it completely stopped functioning. Due to BluSmart's financial problems, the Ahmedabad bench of the National Company Law Tribunal (NCLT) accepted an insolvency plea against the company in August.

Since then, several former executives have claimed compensation under employee claims, and around 200 applicants—including lenders like Catalyst Trusteeship and the Indian Renewable Energy Development Agency (IREDA)—have filed claims against the company totalling almost INR 500 Cr. Gensol Engineering, the publicly traded business that BluSmart's cofounders, the Jaggi brothers, founded, had been integrated into BluSmart's operations. Up until recently, Gensol was the largest fleet supplier to BluSmart, which in turn depended significantly on BluSmart as its biggest client.

However, due to purported governance shortcomings, Gensol has been under regulatory investigation, debt, and lowered credit ratings. Investor confidence was further eroded when credit rating agencies even noted BluSmart's tardiness in fulfilling some debt obligations.

BluSmart’s Final Nail in the Coffin

BluSmart lost the vital support network that enabled them to establish one of India's largest fleets of EVs exclusively as Gensol's financial difficulties worsened. This year, the CEO, CBO, CTO, and other senior executives left the organisation, causing a top-level exodus as well. The Jaggi brothers have been under investigation by enforcement agencies and regulators, including SEBI, for potential financial malfeasance, which has further hampered BluSmart's ability to raise money.

Earlier this year, it was rumoured that investors, including responsAbility and bp Ventures, were considering a $30 million proposal to revive BluSmart. There has been no indication on whether such a rescue is still possible, though, given that the domain is currently for sale, the app is not working, and insolvency claims are mounting.