BluSmart Postpones March Salaries Owing to Financial Difficulties

According to various reports, BluSmart Mobility, an electric taxi-hailing firm that is currently experiencing financial difficulties, has postponed its March salary payments. Cofounder Anmol Singh Jaggi promised in an email to the staff that all outstanding debts will be paid by the end of April. Jaggi stated in an email that there will be a little delay in processing salaries because of present cash flow issues. The firm would like to reassure its employees, nonetheless, that all outstanding payments will be paid by the end of April. He said that the company will be releasing pay cheques in stages, beginning with the lowest pay grades and working up, to guarantee equity and consideration for those who might be more affected. BluSmart was established in 2019 by Jaggi and Punit K. Goyal and provides EV ride-hailing services as well as charging stations in Bengaluru and Delhi NCR. In January of this year, it extended its services to Mumbai and maintained a presence in Dubai.

Alarming Bells: Deals Cancelled, Top-Level Executives Exit

Refex Industries cancelled its agreement with Gensol Engineering to purchase 2,997 electric vehicles a few weeks ago. Gensol EV Lease Pvt Ltd, Gensol's EV financing division, agreed in January to sell 2,997 EV vehicles—originally leased to BluSmart—to Refex Green Mobility Limited (RGML), a subsidiary of Refex. Before that, rumours circulated that Uber was in preliminary discussions to buy BluSmart, a claim the latter once more refuted. Additionally, it was stated that the startup's activities in Dubai were shut down in mid-March, and its intentions to expand its services in Saudi Arabia were shelved. According to the reports, BluSmart had a top-level departure as of March of this year. Vice President Priya Chakravarthy, Chief Technology Officer Rishabh Sood, Chief Business Officer Tushar Garg, and Chief Executive Officer Anirudh Arun have all left. Former vice president Nandan Sharma will assume the role of chief executive officer.

Furthermore, it was claimed that BluSmart had defaulted on INR 30 Cr of bonds in early February. Despite this, the company clarified that it is on track to establish a strong brand that is bolstered by strategic development, a greater emphasis on premium offerings, and an expanding user base.

Financial Outlook of BluSmart

So far, BluSmart has raised $180 million through a combination of loan and equity fundraising rounds since its founding. Investors including bp Ventures, Venture Catalysts, Green Frontier Capital, responAbility, and Deepika Padukone are among those who have contributed to these investments. Regarding financial performance, the business stated that its operational revenue increased by about 245% from INR 4.01 Cr in FY22 to INR 13.84 Cr in the year that ended on March 31, 2023. In the meantime, BluSmart reduced its loss to INR 14.89 Cr in FY23, which is over 58% less than the INR 35.37 Cr it lost the year before.