Two people aware of the development said Blusmart investors are negotiating to buy sponsor Anmol Singh Jaggi to resume ride-hailing rave companies. The people said due diligence and valuation drills were almost completed and some legal obstacles related to Jaggs' transfer of shares were being phased out.
If the deal passes, it will protect investors' money, keep drivers hired, and bring Blusmart's blue-white electric taxi back to the streets. This also means the complete exit of Jaggis, who founded the company six years ago.
Investors led by BP Ventures are conducting senior talks to take charge of the company, investors in Blusmart and other Jaggis company Gensol Engineering Ltd. According to TracXN, as of February 2025, the promoters own approximately 23.98% of Blusmart, while the rest are owned by investors, including SoftBank, Mayfield India Fund, 100 Unicorns, Responsibility, and other celebrities such as Deepika Padukone and Cricketer MS Dhoni.
Jaggi and BP Ventures did not respond to questions.
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Investors want to buy Jaggi's shares at standard value, ask private lenders to write off some loans and invest additional funds to restart operations, people added. A lot of Blusmart's ₹The 85 billion loan is attributed to Gensol.
On April 16, the Securities and Exchange Commission of India (SEBI) banned the Jaj Brothers stock market and served as directorship in any listed company after discovering suspicious forgery and transfer of funds. Sebi found that Jaggi abused financial institutions’ funds to buy Blusmart’s cars for their own use.
After the news, Gensol's stock crashed, while Blusmart, a private company founded by Jaggi Brothers, stopped.
Senior securities attorney Chirag M. Shah said: “If his Demat account is frozen by Sebi, he can't do anything with his stock even if they don't have stocks. The SEBI order has banned new activity in the account, except for the order to settle earlier and the closing of derivative positions.
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According to Amarjit Chopra, former principal of the Institute of Chartered Accountants (ICAI), Brucema investors can appeal to SEBI to allow transactions that can secure their business. “At best, the transaction could result in any payments due to the Blusmart promoter entering the escrow account,” Chopra said.
Cab Hailing Giant Uber explored the deal with Blusmart earlier, but it turned out to be a man not to start as it wanted to include Blusmart's cars in the fleet, but did not buy out its investors. As an asset model, Uber also doesn't want to bear the burden of Blusmart's lease rent, which does not have the funds to look for as lenders.
“Investors in Blusmart need to call for a complete restructuring of the company's ownership and debt. It should be done in such a way that eventually, Blusmart will be able to cut off its umbilical cord from Gensol and be able to develop on its own,” said Abizer Diwanji, founder of Neostrat Advisors.
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Until recently, Blusmart was considered a successful ride-hailing company but suddenly stopped operating in mid-April.
Since Blusmart is considered a viable business, investors are keen to make a deal every time they ride until the road. Investors such as BP Ventures regularly monitor their operations, and those investors are represented on their boards, and their services have won customer loyalty despite the high prices. Although booking a Blusmart cab leads longer, its drivers rarely cancel travel. Technically, the car must be moved. The remaining batteries are deeply discharged for a long time, and returning to downgraded batteries can be expensive.
While the resumption of operations will immediately help Blusmart investors retain its capital, it is also useful for other stakeholders. It will pay Jaggis liquidity and restart lease rentals to Jaggi Promots’ Gensol Engineering, which has a large number of cars running in its fleet. Now, these cars lend it to lenders through Gensol, which is crucial to bringing the car back to the road.
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