BluSmart seeks a buyer: What’s next for one of India’s oldest EV ride-hailing startups?

BluSmart

In 2019, BluSmart hit the Indian roads with a bold vision—to build the country’s first all-electric ride-hailing fleet and reshape urban mobility. Backed by the promise of cleaner air and sustainable transport, the startup quickly carved a niche in a market dominated by Ola and Uber. But fast forward to 2024, and BluSmart finds itself at a crossroads.

Despite early success, the company is now actively seeking a buyer, as it struggles with the financial strain of its asset-heavy model. Reports indicate that ride-hailing firm Uber is in early stages of talks to acquire BluSmart.

“This is at a very early-stages of discussion. Uber could be evaluating whether this would be a good synergy. However, BluSmart’s assets are expensive for anyone to acquire as of now. It will take much longer for this deal to proceed,” said an industry source aware of the developments.

Also read: Uber in early talks to acquire EV ride-hailing firm BluSmart

To be sure, BluSmart has denied holding any such talks with Uber.

In a media statement on March 16, BluSmart denied any discussions or negotiations regarding an acquisition by Uber.

"The report suggesting such a development is entirely speculative and unfounded. As India’s leading EV ride-hailing and charging infrastructure platform, BluSmart remains focused on scaling its operations, expanding its footprint, and driving sustainable mobility forward," BluSmart's spokesperson said responding to Moneycontrol's queries.

Uber’s green strategy 

Industry sources indicate that Uber may also be considering an acquisition through its vendor, Everest Fleet, which already operates a significant number of vehicles on Uber’s platform.

"Uber has been actively looking at expanding its EV fleet in India, and a BluSmart acquisition through Everest Fleet could be a strategic move," said a senior industry executive familiar with the matter. However, negotiations are still in early stages, and it remains to be seen whether Uber will make a formal bid.

Uber did not respond to Moneycontrol’s queries.

This comes amid Uber’s recent announcement of strategic partnerships with various electric vehicles (EV) manufacturers and organisations in India. This move aims to expedite the shift towards sustainable mobility among its partners.

By expanding collaborations with EV fleet partners such as Lithium Urban Technologies, Everest Fleet Pvt Ltd, and Moove, Uber plans to deploy 25,000 electric cars on its platform in India within the next two years.

In addition to these fleet partnerships, Uber has also joined forces with Zypp Electric to introduce 10,000 EV two-wheelers in Delhi by 2024.

BluSmart’s acquisition talks signal a crucial moment not just for the company but for India’s broader electric mobility ambitions.

The BluSmart-Gensol Connection

BluSmart, founded in 2019, is deeply intertwined with Gensol Engineering, a renewable energy solutions company. BluSmart is co-founded by Anmol Singh Jaggi, who also leads Gensol as the promoter and managing director. BluSmart benefits from this close association. Approximately two-thirds of BluSmart’s 7,000 electric vehicle fleet is leased from Gensol, positioning Gensol as a key supplier and stakeholder.

Gensol, which provides EPC (engineering, procurement, and construction) services for solar projects, has been a crucial enabler for BluSmart’s early growth. Gensol’s role in supplying EVs and charging infrastructure has allowed BluSmart to build its asset-heavy model.

However, the close relationship has also led to financial dependencies, with Gensol extending support to BluSmart through vehicle leases and infrastructure investments.

Complicating matters further, Gensol Engineering has recently faced significant financial challenges. The company's stock price plummeted by 68% in early 2025, attributed to delays in servicing debt to BluSmart bondholders and an increase in share pledges to 85.5%.

Also read: MC Explains: Why did Gensol Engineering shares crash 80% from highs?

These developments have raised concerns about Gensol's financial position and its ability to support BluSmart's operations. The liquidity crisis has led to heightened financial strain, jeopardizing Gensol's future and, by extension, BluSmart's stability.

BluSmart’s journey in India

Launched with a vision to create a sustainable urban transport system, BluSmart began operations in Delhi-NCR, targeting environmentally conscious commuters frustrated with the reliability issues of traditional ride-hailing platforms.

Unlike Uber and Ola, which rely on driver-owned vehicles, BluSmart operates its own fleet of electric cars and charging stations, ensuring better control over service quality.

The model attracted users who preferred predictable fares and well-maintained vehicles, but scaling such an asset-heavy operation has proven challenging.

Despite rapid early growth, BluSmart has struggled to expand beyond its strongholds in Delhi-NCR and Bengaluru. High capital expenditure and the slow rollout of charging infrastructure have limited its ability to compete at a national level. The company has also faced delays in EV deliveries, affecting fleet expansion.

BluSmart was co-founded by Anmol Singh Jaggi and Punit K Goyal, both seasoned entrepreneurs with experience in renewable energy. Jaggi, a serial entrepreneur, also

BluSmart has raised over $200 million in funding across multiple rounds from investors such as BP Ventures, Mayfield Fund, and Green Frontier Capital.

Also read: EV ride-hailing startup BluSmart in talks to raise up to $100 million

In April 2023, it secured a significant debt and equity infusion to expand its fleet and charging network. However, the company's need for heavy capital investment has led to frequent fundraising cycles.

In 2024 the firm raised around $24 million in funding from existing investors, including BP Ventures, as well as contributions from the founders and the leadership team.

“Unlike asset-light ride-hailing firms, BluSmart’s requirement for infrastructure investment means it burns cash at a much faster rate. With profitability still out of reach, investor appetite has waned, pushing the company to explore a potential sale or strategic investment to stay afloat,” said an industry source requesting anonymity.

As of the fiscal year ending March 31, 2023, BluSmart reported an operating revenue of Rs 170 crore, a significant increase from Rs 29 crore in FY22. The company's net loss widened to Rs 65.5 crore in FY22 from Rs 39.4 crore in the previous year.

BluSmart's annual revenue run rate crossed Rs 400 crore in FY24, reflecting its rapid growth in the electric mobility sector.

Competition in ride-hailing space 

BluSmart competes with industry giants like Uber and Ola, which dominate India’s ride-hailing market. While these players have struggled with driver dissatisfaction and fluctuating fares, their asset-light models allow for rapid scaling without heavy capital expenditure.

BluSmart also faces stiff competition from players like Rapido and Namma Yatri.

Rapido, originally a bike-taxi aggregator, has expanded aggressively into the auto-rickshaw segment and is now investing in an electric fleet, recently deploying Bengaluru’s largest EV auto fleet. The company’s logical next move will be to invest in EV car fleet too.

Meanwhile, Namma Yatri, an open-network ride-hailing platform, has gained traction with its zero-commission model, empowering drivers by allowing them to retain 100% of their fares. With its planned expansion to multiple cities, Namma Yatri presents a decentralized alternative that could challenge BluSmart’s dominance in certain markets.

In the EV space, newer startups like Evera and Moove are emerging as competitors especially in the B2B space, focusing on electric-only fleets with different ownership structures. Traditional automakers and fleet operators are also entering the space, increasing the pressure on BluSmart to differentiate itself while managing costs.

The road ahead

With the hunt for a buyer underway, BluSmart faces a defining moment.

“If it finds a strategic partner willing to inject capital and support its growth, it could emerge as a leader in India’s EV ride-hailing space. However, if a deal fails to materialize, BluSmart may struggle to sustain operations, leading to potential consolidation or even an exit,” A source quoted above said.

The broader question is whether an asset-heavy EV ride-hailing model can survive in a price-sensitive market like India, he added.

As BluSmart navigates its future, the fate of sustainable urban mobility in the country hangs in the balance.