March 24th, 2025
EV ride-hailing startup reaffirms independence despite parent company’s debt crisis and Dubai operations shutdown
BluSmart Mobility has firmly rejected rumors of acquisition talks with Uber. This comes as its parent company Gensol Engineering struggles with mounting debt and credit rating downgrades.
Founders Dismiss Sale Rumors
The electric vehicle ride-hailing service was co-founded by Gensol promoters Anmol Singh Jaggi and Punit Goyal. It has become the subject of takeover speculation following Gensol’s announcement of major debt reduction measures.
“BluSmart is not for sale,” Jaggi stated when addressing the Uber rumors. He stressed that the company aims to scale operations independently. BluSmart positions itself as a premium service with zero surge pricing and no cancellations.
Financial Troubles at Parent Company
The denial comes during a difficult period for both companies. Gensol Engineering has seen its stock drop over 65% in six months. Credit agencies ICRA and CARE downgraded its rating to “default” status. They cited delayed debt payments and alleged financial document issues.
Gensol’s debt has reached ₹1,146 crore, with a high debt-to-equity ratio of 2x. To fix its finances, the company plans to sell assets worth ₹665 crore. This includes nearly 3,000 electric vehicles. They also aim to raise another ₹600 crore through Foreign Currency Convertible Bonds and promoter warrants.
Growth Amid Operational Challenges
Despite these issues, BluSmart reports strong performance. The company saw 77% growth in gross merchandise value for FY25. It has expanded its fleet to over 8,500 electric vehicles across India.
However, BluSmart recently closed its Dubai operations. The shutdown came due to money constraints and trouble securing more funding. This raises questions about its growth strategy going forward.
Strategic Retreat to Focus on India
The exit from Dubai shows BluSmart’s challenges in expanding internationally while managing costs. The company will now focus on strengthening its presence in India during ongoing restructuring efforts.
BluSmart continues to attract investor interest. It has backing from BP Ventures and ResponsAbility, raising over ₹1,000 crore in funding. The company has changed its timeline but still plans to grow its fleet. It now targets about 10,000 vehicles by mid-2025 instead of March 2024 as first planned.
Contrasting Fortunes
The different situations of these linked companies highlight the complex nature of India’s emerging electric mobility sector. While Gensol works on financial recovery through asset sales and fundraising, BluSmart remains committed to independent growth despite recent challenges.
For now, BluSmart’s rejection of acquisition rumors shows confidence in its business model. Questions remain about how Gensol’s debt restructuring might affect its EV subsidiary’s operations and growth plans.
