BluSmart investors propose $30M in new funding to revive the Uber rival

Tech Crunch - May 7th, 2025

A group of investors is considering injecting $30 million into BluSmart, an Indian cab-hailing startup, to revive its operations after a sudden halt last month. The proposed investment, contingent upon co-founder Anmol Singh Jaggi's resignation, aims to address operational liabilities, including pending dues and employee salaries. While Jaggi has verbally agreed to step down from the board with assurances against legal action, formal resignation is pending. BluSmart's operations suspension affected riders, investors, and its 600 employees, who have not been paid since March. The service shut down also left 8,700 EVs unused, posing risks to their maintenance, and led to driver protests in New Delhi.

The potential revival of BluSmart faces challenges, including corporate governance issues and investigations into its primary EV lessor, Gensol Engineering. Investors are keen to restart operations within three weeks, fearing brand dilution if competitors like Evera and Uber utilize BluSmart’s fleet. Meanwhile, Evera Cabs has absorbed some of BluSmart’s fleet and drivers, providing temporary relief. Separate interest in acquiring BluSmart has come from Eversource Capital and the Adani Group, though no deals have been finalized. Restarting operations may position BluSmart to attract strategic investments, but the path forward remains uncertain due to ongoing investigations and unresolved corporate matters.

Corporate Governance Investment Uber Blu Smart Gensol Engineering Anmol Singh Jaggi Bp Ventures Respons Ability Eversource Capital Adani Group Evera Cabs E Vs

Story submitted by Fairstory

RATING

6.4

Moderately Fair

Read with skepticism

The news story provides a comprehensive overview of BluSmart's current challenges and potential revival through a proposed investment. It effectively highlights key issues such as financial liabilities, operational difficulties, and the impact on employees and drivers. However, the reliance on unnamed sources and lack of direct confirmations from involved parties slightly undermine its accuracy and source quality. The article is timely and addresses topics of public interest, particularly in the context of the EV industry and corporate governance. While the story is clear and readable, it could benefit from more balanced perspective representation and deeper exploration of controversial elements to enhance its engagement and impact potential. Overall, the article offers valuable insights but would be strengthened by more transparent sourcing and balanced coverage.

Accuracy

The news story provides a detailed account of the financial and operational challenges facing BluSmart, a cab-hailing startup in India. It accurately reports the proposed $30 million investment contingent on co-founder Jaggi's resignation. However, the story could benefit from more direct confirmation from involved parties like BP Ventures and ResponsAbility, who are mentioned as key investors. The article's claim about BluSmart's pending dues and financial liabilities appears credible, yet it would be strengthened by direct financial documents or statements from the company. The potential acquisition interests from Eversource Capital and Adani Group are mentioned but lack direct quotes or confirmations, which slightly detracts from the precision and verifiability of these claims.

Balance

The article attempts to present a balanced view by discussing both the potential revival of BluSmart and the challenges it faces. However, it leans towards highlighting the negative aspects, such as the financial liabilities and operational issues, without equally exploring the potential positive outcomes of the investment proposal. The perspectives of the employees and drivers affected by the suspension are mentioned briefly, but the article could have provided more depth by including their voices or reactions. Additionally, the investors' optimism about restarting operations is covered, yet the story could have balanced this with more skepticism or alternative viewpoints from industry experts.

Clarity

The article is generally clear and well-structured, providing a logical flow of information about BluSmart's situation. It uses straightforward language to describe complex financial and operational issues, making it accessible to a general audience. The tone remains neutral throughout, avoiding sensationalism or biased language. The article effectively outlines the key events leading to BluSmart's current state and the proposed solutions. However, some sections could benefit from more detailed explanations, particularly regarding the financial arrangements and the implications of the investment proposal.

Source quality

The article relies heavily on unnamed sources for key information, such as the investment proposal and Jaggi's resignation. While these sources might be credible, the lack of direct attribution raises questions about the reliability of the information. The story mentions attempts to reach out to BP Ventures, ResponsAbility, Eversource Capital, and Adani Group, but their lack of response is noted. This reliance on unnamed sources and the absence of direct quotes from involved parties slightly undermines the article's authority and credibility. Including more named sources or official statements would enhance the source quality.

Transparency

The article provides some context about BluSmart's operational issues and the financial probe into Gensol Engineering. However, it lacks transparency in disclosing the methodology used to gather information, particularly from unnamed sources. The story does not sufficiently explain how information was verified or the potential biases of the sources. Additionally, there is no mention of any potential conflicts of interest, which could impact the impartiality of the reporting. Greater transparency about the sources and verification methods would improve the article's credibility.