BluSmart Fund Diversion Row: Dhoni, Deepika, Grover Among Investors in EV

The electric cab startup BluSmart was once a rising star in India's green mobility space but has now paused ride bookings. This was after allegations came from the Securities and Exchange Board of India (Sebi) that co-founder Anmol Jaggi diverted money that was intended for buying vehicles. Since its inception in 2018, the company has raised more than INR 4,100 crore and counts some high-profile backers among its investors, including cricketer MS Dhoni, actor Deepika Padukone, and entrepreneur Ashneer Grover.

Operations have suddenly frozen, casting a shadow over the very startup that promised to take on ride-hailing giants like Ola and Uber with an all-electric fleet. Its future now seems uncertain.

Sebi’s Allegations Trigger Fallout

Anmol Jaggi and his brother Puneet Singh Jaggi, who is also in this venture, were barred from holding board positions and from accessing the capital markets. This restriction came when Sebi issued an interim order against these two brothers. According to the capital market regulator, the Jaggi brothers were using the capital they had raised to buy electric vehicles for other, quite different, and far more luxurious, ventures.

Gensol, which rented out electric vehicles to BluSmart, had taken a loan of nearly INR 978 crore from lenders such as IREDA and Power Finance Corporation during the time period between 2021 and 2024. This has led to demands for a much larger investigation into the company's finances, with Gensol's narrow financial connections to BluSmart being the center of attention.

High-Profile Investors Caught in the Crossfire

BluSmart's electric and clean mobility platform lured many well-heeled backers, including Bollywood stars. Deepika Padukone invested USD 3 million through her family office in the venture's 2019 angel round. Other investors in the round included Sanjiv Bajaj of Bajaj Capital and Rajat Gupta, as well as the JITO Angel Network.

Last year, in a pre-Series B round, the family office of MS Dhoni joined the cap table. Also present were Sumant Sinha of ReNew Power and a firm from Switzerland that manages assets. Another early supporter, Ashneer Grover, disclosed that he invested INR 1.5 crore in BluSmart and another INR 25 lakh in Matrix. However, the Sebi order alleged that misused funds amounting to INR 50 lakh were routed to Grover's own startup, Third Unicorn Pvt Ltd. If true, this would suggest that Grover was potentially deeper in the scandal than previously thought.

BluSmart notified clients through email that reservations on its platform have been put on temporary hold. The company attributed the decision to internal restructuring. However, the regulatory action against it suggests a far-reaching crisis that could curtail its business for a long while. Once viewed as an emblematic step toward sustainable mobility, the startup now finds itself with an uncertain future.