Anmol Jaggi pitched strategic changes at BluSmart ahead of Sebi crackdown on Gensol

Hours before a Sebi interim order revealed the irregularities at Gensol Engineering Ltd, cofounder Anmol Singh Jaggi tried to sell shareholders on three roadmaps for BluSmart — the EV ride-hailing firm also cofounded by Jaggi..

According to an email to BluSmart’s shareholders on April 15, which was seen by ET, promoter Jaggi listed three "strategic options" under consideration for BluSmart. The three options were shifting fleet operations to Uber; interim funding from VC firm BP Ventures; and an asset sale to climate focussed private equity firm Eversource Capital, securing primary capital in return.

Under the first proposal, BluSmart would have shifted its fleet operations to Uber to leverage the consumer ecosystem of the multinational ridehailing platform. The move was meant to improve the number of trips, and unit economics, in turn, while cutting operational expenses from Rs 95 crore to Rs 11 crore. It would not have required any legal restructuring, Jaggi stated in the email. ET reported this development first on April 14.


Becoming an Uber platform partner would create new fundraising avenues for BluSmart, as it did for Everest Fleet and Zypp while operating on third-party platforms, he added.

The second proposal called for $6.8 million in funding from BP ventures, the venture capital arm of British oil major BP plc. This route would have effected "immediate leadership and governance changes", along with "removal of certain promoter rights and board powers", Jaggi's note to shareholders read. It would have also entailed transfer of treasury oversight and financial controls, it added.

BP Ventures is an existing shareholder in BluSmart, having participated in multiple funding rounds for the EV ridehailing platform.

Also Read: BluSmart bond holders may invoke immediate repayment provisions

Under the third route, Eversource Capital would have acquired BluSmart's EV ridehailing business in a slump sale and secondary transaction valued at up to Rs 400 crore. Further, the climate-focussed private equity firm would have infused up to Rs 800 crore in primary capital into a newly formed entity for fleet expansion, setting up charging stations and technology development. The transaction would have included a combination of asset acquisition and equity participation by designated shareholders, as well as regulatory approvals and due diligence.

Eversource Capital would have integrated synergies between BluSmart and its portfolio company, Lithium Urban Technologies, and implemented fresh governance frameworks and ESOPs for key talent.

Founded in 2014, Lithium Urban offers EV fleet and charging infrastructure to businesses. Eversource Capital had bought a majority stake in the startup in 2022.

While the first proposal had already been sent to Gensol shareholders on April 6, the other two were to be sent to them for voting.

BluSmart closed operations after cofounders Anmol Singh Jaggi and Puneet Singh Jaggi were charged with siphoning funds and falsifying documents. According to an interim Sebi order, of the Rs 977.75 crore loaned to Gensol Engineering to buy EVs for BluSmart, the Jaggi brothers used Rs 262 crore for personal expenses.

The regulator has since banned Gensol and its promoters from the securities markets. Anmol Jaggi and Puneet Jaggi have stepped down from the company's board, in accordance with the Sebi order.

Meanwhile, Gensol and BluSmart are on the corporate ministry's radar for possible corporate governance violations, ET had reported.

On April 21, ET reported that investors in BluSmart’s bonds are planning to invoke the ‘Event of Default’ provision and seek immediate repayment of their money as the ride-hailing firm undergoes a cash crisis.

Also Read: PFC, IREDA mull legal measures against Gensol to safeguard their loan exposure