Private equity firm Eversource Capital is in advanced discussions to acquire troubled EV ride-hailing startup BluSmart for Rs 850-1,000 crore, according to multiple reports. The deal, if finalized, would mark a steep 60% discount to BluSmart’s last valuation of $300 million (Rs 2,560 crore).

Table of Contents

Why Eversource Wants BluSmart?

Eversource plans to merge BluSmart with its existing portfolio company, Lithium Urban Technologies – a B2B EV fleet operator – and pump in $100 million post-merger. This would create India’s largest integrated EV mobility platform, combining BluSmart’s consumer-focused ride-hailing service (8,700 EVs) with Lithium’s corporate transport solutions.

Key conditions:

Founders’ exit: BluSmart co-founders Anmol Singh Jaggi and Puneet Singh Jaggi must resign from the board.
Debt clearance: Eversource will settle pending employee salaries and customer refunds.

Gensol Scandal: The Root Cause

The Jaggi brothers, who also promote Gensol Engineering (a listed EV firm), are under SEBI scanner for:

Fund diversion: Rs 262 crore meant for EV purchases allegedly used to buy a luxury Gurugram apartment.
Fake documentation: Submitting forged invoices to banks for loans.
Market manipulation: Using shell entity Wellray Solar to trade Gensol shares.

SEBI has banned the brothers from securities markets, while the Ministry of Corporate Affairs launched a separate probe. Gensol’s shares have crashed 84% in 2025.

BluSmart’s Current Crisis

Operations suspended: 5,500 EVs (supplied by Gensol) grounded.
Customer refunds: Wallet balances to be repaid within 90 days if services don’t resume.
Executive exodus: Multiple senior leaders resigned.

Strategic Impact of the Deal

For Eversource:

Portfolio boost: Adds BluSmart’s tech stack and 3,200 leased EVs to Lithium’s 1,500-vehicle fleet.
Market dominance: Combined entity could control 70% of organized EV ride-hailing.
For India’s EV Sector:
Investor confidence: Shows PE appetite despite governance risks.
Job preservation: 5,000+ driver partners could retain employment.

What’s Next?

A non-binding offer has been submitted, with final approval expected within 2 weeks. Due diligence and SEBI/MCA investigation outcomes remain key hurdles. BP Ventures, Stride Ventures, Panthera Capital, MS Dhoni, Deepika Padukone, and Ashneer Grover.

Eversource’s Green Portfolio:

GreenCell Mobility: 5,000+ e-buses under NueGo brand.
Ayana Renewable: 10 GW solar/wind projects.
EverEnviro: Waste-to-energy plants.

This acquisition could salvage India’s largest EV ride-hailing service while setting new governance standards for startups. For customers, it offers hope for resumed services and refunds. For drivers, it promises job security amid the green mobility push.