MS Dhoni, Deepika Padukone Among Investors in Embattled Startup BluSmart
Electric ride-hailing startup BluSmart has temporarily halted its operations after regulatory scrutiny from the Securities and Exchange Board of India (SEBI), which alleged misuse of funds by co-founder Anmol Jaggi. The startup, once seen as a formidable competitor to Uber and Ola, now faces an uncertain future.
Founded in 2018 and based in Bengaluru, BluSmart had raised over Rs 4,100 crore from prominent investors. Despite its strong start, the company has paused customer bookings as of April 17, informing users via email about the suspension.
The SEBI inquiry, detailed in an interim order released two days prior, accused Anmol Jaggi and his brother Puneet Singh Jaggi—also the promoters of Gensol Engineering—of diverting loan funds intended for EV purchases to personal luxuries. These included a high-end apartment at DLF’s The Camellias in Gurugram and golf equipment worth Rs 26 lakh.
The regulatory body has barred both Jaggi brothers from serving as directors in any company or accessing capital markets until further notice.
BluSmart had close financial ties with Gensol, which had leased electric vehicles to the ride-hailing firm. The revelations have also triggered concerns of a multi-agency probe into Gensol over alleged stock manipulation and fund diversion.
Notable Investors
BluSmart attracted high-profile investors from various industries thanks to its eco-friendly fleet and sustainable business model. Some of the prominent names include:
- MS Dhoni, celebrated cricketer
- Deepika Padukone , Bollywood actor
- Sanjeev Bajaj, MD of Bajaj Capital
- Ashneer Grover, co-founder of BharatPe
Deepika Padukone was one of BluSmart’s earliest backers, investing $3 million in 2019 through her family office during an angel funding round. Sanjeev Bajaj also contributed $3 million during the same round, along with JITO Angel Network and Rajat Gupta.
In 2023, BluSmart raised $24 million in a pre-Series B round, which brought in fresh investments from Dhoni’s family office, Sumant Sinha of ReNew Power, and a Swiss asset management firm.
Meanwhile, Ashneer Grover, already under regulatory scrutiny, claimed he had invested Rs 1.5 crore in BluSmart and Rs 25 lakh in Matrix Partners. SEBI’s findings further allege that Rs 50 lakh was redirected into Grover’s latest venture, Third Unicorn Pvt Ltd.
Gensol, the company at the center of the controversy, reportedly borrowed Rs 978 crore from IREDA and Power Finance Corporation (PFC) between 2021 and 2024, with the bulk of the loans earmarked for the procurement of 6,400 electric vehicles.