[trailblazer13]

BluSmart had become the default choice for cab bookings, especially for airport runs as there were no hassles of last minute cancellations by ola/uber.

Hope Blusmart finds a way to return.

[sukarsan]

There was never a business case for blusmart and for once I really wish that I had written a post on this.

Below are my observations over the years:

1. Ola/Uber are barely profitable inspite of deep pockets and are most importantly asset light.
2. Bluesmart was not just asset heavy, they were super asset heavy. They owned thier entire fleet . They also paid twice as much upfront for thier electric fleet
3. While electricity costs were low(they had many charging hubs), it takes time to charge and this is a down time which puts them at a disadvantage as compared to the ICE competitors.
4. Insurance cost is sky high for electric cars as its tough to repair and resale value is also dirt low. Anyone will buy a used Innova and no one will buy a used battery car due to unreliability.

[guru_max]

If the funds were diverted to other activities , what were PFC and IREDA doing?

Also, this is not the first transport/logistics related company with an asset heavy model that is either corrupt or gone bankrupt,bought out etc. The never ending pile of money and valuations does not work for this line of business.

[poloman]

This is the case with most of the promoters and businessmen in India. These guys did two mistakes. They misused loan provided by government backed lenders. If they had blown away VC money like many others are doing no questions would have been asked. Also if you are a publicly listed company, such investigations can happen at any time and you will be answerable.

Really sad that companies which provide good service be it Kingfisher airlines or Blusmart or any similar companies go belly up in no time. Only Lala companies can flourish in India.

[headbanger]

Can't comment on the legal side of the things but it's just sad.

A company(BluSmart) which created goodwill within the end user ecosystem and actually looked like solving a genuine problem is going to be culled not due to competition intensity but dishonest management. What a shameful sham!!!

[speed79]

I am one of the co-founders of a self-funded small private limited company (Software) founded in 2009. We have been profitable since the very first year, though there have been slight ups-and-downs over the years. Since previous 2 years we have seen a sudden decline in revenue and we have booked loss for first time in FY2024-25. Last year we were doing restructuring of share holding in the company and we needed valuation report of the company (from SEBI registered valuators). During this process, we were given a hint that we were eligible to go for IPO as a small-cap company. When we pointed out that we have a declining revenue since the previous year and not good outlook in current year, we were assured that there are ways to fabricate revenue growth. We were not interested to explore this option to loot public money, and have been working on new product in trying to turn around the company. But looks like if one has an intention to loot, it is not that difficult.

[Linuskm]

Originally Posted by thanixravindran

Real questions are - What was the auditor doing? And were there not questions raised by lenders if funds are not utilized? It looks like everybody involved. I am surprised on the SEBI investigation as I thought they typically investigate market manipulation.

Remember how much due diligence banks do when issuing a home loan.

[justwheels]

Originally Posted by thanixravindran

Real questions are - What was the auditor doing? And were there not questions raised by lenders if funds are not utilized? It looks like everybody involved. I am surprised on the SEBI investigation as I thought they typically investigate market manipulation.

Just remember ENRON, SATYAM and many more, and you will realize these had the Big 4 as the auditor and still such large scale scams happened. Can't say if it's always hand in glove or sometimes these founders try to outsmart the compliances that the usual controls don't catch them soon.

However, most scams happen because you did something which backfired and then you kept doing wrong after wrong to cover up, hoping you will come out of it, but then you go into a rabbit hole, and finally get caught.

[carhead]

Apologies in advance for the rant.

Yet another instance of unethical business practise.

Many of us take our freedom and society in general for granted. Corruption & dishonesty are now normalised as part of the 'Indian Way'. Its an utter shame.

At least let us fellow BHPians try to change for better. Every drop counts.

Thanks.

[gupta_chd]

Originally Posted by poloman

This is the case with most of the promoters and businessmen in India. These guys did two mistakes. They misused loan provided by government backed lenders. If they had blown away VC money like many others are doing no questions would have been asked. Also if you are a publicly listed company, such investigations can happen at any time and you will be answerable.
.

Isn't it one positive side. When govt / public companies money cannot be easily squandered as compared to private VC money, it is one good aspect. If course, there are umpteen cases where public banks money has been laundered and the culprits have gotten away.

I am sure if it was other way round, we would have questioned that it is easy to loot public money as the govt or babus don't care a dime and are hand in gloves with these dishonest honchos while private circle has a lot tighter control. SEBI really needs to be appreciated for its hard work.

[NinerWhiskey]

Originally Posted by volkman10

BluSmart is said to lease some of electric cabs to Uber Green and operate a leaner fleet.
The livery on a few BluSmart cabs are being changed to Uber Green at Bengaluru airport.

What will happen to the charging stations and their facilities/parking yards beside the airports? Will Uber get access to them as well?

Duopolies never benefit the consumer — airfares are already sky-high, and now cabs will follow

[volkman10]

Eversource Capital in advanced talks to acquire BluSmart for ₹850 crore.

Ministry of Corporate Affairs has launched a suo motu investigation into alleged irregularities at Gensol Electric.

A final announcement on the Eversource deal could be made within the next two weeks, subject to due diligence and board approvals.

Link:

[Sohail_91]

I was a regular user of BluSmart whenever I was in Bangalore, not just for my office commute but also for weekend errands, as I don't have a personal vehicle in the city.

What truly stood out was the reliability, the cab would arrive ahead of time, right at my gate, without the usual driver calls asking for the drop location or the classic "Sir, cash or carda?" that’s all too common with Ola and Uber. The AC was always on, the rides were peaceful, and the driver partners were polite and dressed in neat uniforms.

It’s genuinely disappointing to see a company that offered such dependable service and was addressing a real gap in urban mobility going down like this.