BluSmart Shuts Down Amid Fraud Allegations, Refuses Customer Refunds

BluSmart—the once-promising electric vehicle (EV) taxi startup—has officially thrown in the towel, accusing its own founders of outright fraud and slamming the door on customer refunds. The announcement, dropped like a grenade on social media platform X on Saturday, paints a grim picture of a company in freefall: operations shuttered since February 2025, loyal employees stiffed on four months' salaries, and hapless riders staring at vanishing wallet balances with zero recourse.

"Everyone, BluSmart company has been shut since February 2025. Founders have committed the fraud. Do not expect any refund of your wallet money," the company's stark X post declared, cutting off a flood of desperate queries from users begging for their money back. It didn't stop there: "Even the employees have also not got their 4 months salary. No point messaging on social media." Ouch. For a startup that once zipped around cities like Bengaluru, Delhi, and Mumbai with a fleet of green cabs, promising eco-friendly rides and seamless app bookings, this is less a pivot and more a nosedive into oblivion.

Let's rewind to BluSmart's glory days—or at least, what passed for them. Founded in 2019 by Anmol Singh Jaggi and Punit K Goyal, the Bengaluru-based outfit burst onto the scene as India's answer to Uber, but with a twist: all-electric, zero-emission rides powered by a network of charging stations and a cashless app ecosystem. Backed by big-name investors like BP Ventures, Survam Partners, and even Microsoft, BluSmart raised over $200 million in funding rounds, hitting a valuation north of $300 million by 2023. They rolled out ambitious plans for 10,000 EVs by 2024, partnering with Tata Motors for custom fleet vehicles and expanding to 20+ cities. Riders loved the perks—dedicated airport pickups, women-only options, and wallet top-ups for discounts—while the company touted its role in cutting urban pollution, claiming over 100 million emission-free kilometers logged.

Also Read: Fertiliser Crisis Shuts Down Odisha Assembly as BJD Protests Rock House

But cracks started showing last year. Rumors swirled of cash crunches, delayed driver payouts, and fleet maintenance woes amid India's cutthroat cab market, where Ola and Uber dominate with aggressive pricing. By early 2025, whispers turned to screams: suppliers unpaid, expansion stalled, and internal emails (leaked to tech blogs) hinting at "financial irregularities." The tipping point? Insiders demanded Jaggi's ouster as the non-negotiable price for any bailout. "Resign or we walk," sources close to the matter told NDTV Profit, with potential rescuers like a consortium of EV investors balking at the founder's involvement. Jaggi, a serial entrepreneur with a track record in logistics via his prior venture EvoNex, defended his vision in a now-deleted LinkedIn post, blaming "regulatory hurdles" and "market volatility." Too little, too late.

Now, the fallout is brutal. Customers who prepaid into BluSmart wallets—sometimes thousands of rupees for frequent rides—are out of luck, with the company essentially ghosting them. "I had ₹5,000 in my wallet for family trips. It's just... gone," fumed Delhi commuter Priya Sharma on X, echoing hundreds of similar rants. Support tickets pile up unanswered, and the app? A digital graveyard, still downloadable but utterly useless. For the 5,000+ drivers and office staff, it's worse: four months without pay means mounting bills, repossessed vehicles, and shattered dreams. "We believed in the green revolution they sold us," one anonymous driver told reporters, his EV parked idle in a Bengaluru lot. Labor unions are circling, threatening lawsuits for back wages, while the Employees' Provident Fund Organisation probes potential PF diversions.

Broader ripples? This isn't just BluSmart's mess—it's a gut punch to India's EV startup ecosystem. With government subsidies under the FAME-II scheme drying up and global funding winters biting hard, BluSmart's implosion underscores the razor-thin margins in sustainable mobility. Competitors like Ola Electric are scaling back ambitions, and investors are jittery, questioning due diligence on founder-led ventures. Regulators, including the Ministry of Road Transport, have taken note; a probe into "alleged fund misappropriation" is underway, per sources, potentially roping in the Enforcement Directorate if foreign investments were siphoned.

As the sun sets on BluSmart's electric dreams, one thing's clear: In the race for green rides, fraud allegations and unpaid bills make for the ultimate roadblock. Will Jaggi face the music? Can the remnants of the company claw back from the brink? For now, riders and workers are left idling—furious, forgotten, and out of charge. If you're a holdout with wallet funds, consider this your cue: Switch apps, stat. The green cab lane? It's closed for business.

Also Read: Michigan Woman Nearly Misses $1 Million Lottery Call She Mistook for Scam