Sanjeev Bikhchandani Reacts To BluSmart Shutdown And Sudden Unemployment Of Over 15,000 Gig Workers

Sanjeev Bikhchandani, founder and Executive Vice Chairman of Info Edge (which operates Naukri.com), has expressed disappointment over the abrupt shutdown of Gurugram-based BluSmart Cabs, a prominent electric ride-sharing company.

"As a customer, I'm disappointed - the cab services were really good," Bikhchandani told ANI. "But the business has to be viable. Corporate governance must be sound for any company to sustain."

BluSmart's sudden suspension of operations comes in the wake of a Securities and Exchange Board of India (SEBI) investigation into its parent company, Gensol Engineering Ltd. The probe was launched following a complaint received in June 2024, alleging fund diversion and document forgery.

According to SEBI's findings, Gensol Engineering had secured loans totaling Rs 977.75 crore from IREDA and PFC. Of this, Rs 663.89 crore was specifically sanctioned for the purchase of 6,400 electric vehicles (EVs), which were then leased to BluSmart. However, discrepancies emerged during the investigation.

In its response to SEBI in February 2025, Gensol admitted that it had procured only 4,704 EVs to date-well below the number initially claimed. This was corroborated by Go-Auto Private Limited, the EV supplier, which confirmed vehicle deliveries worth Rs 567.73 crore.

Given that Gensol was required to contribute an additional 20 per cent equity to the total EV investment, the projected outlay should have been around Rs 829.86 crore. This leaves an estimated Rs 262.13 crore unaccounted for, raising serious concerns about financial mismanagement.

As a result, SEBI has taken decisive action. It has barred co-founders of BluSmart - Anmol Singh Jaggi and Puneet Singh Jaggi - from serving as directors or holding any key managerial positions in Gensol Engineering until further notice. Additionally, the market regulator has directed the parent company to suspend a proposed stock split and barred the Jaggi brothers from raising capital, citing irregularities in earlier funding rounds.

Bikhchandani emphasized that the SEBI report should act as a wake-up call for the Indian startup ecosystem. He pointed out that while there are around 1.6 lakh registered startups in the country, the actual number, including unregistered ones, could be as high as 7 to 8 lakh. Although a few bad actors may exist, he believes that 95 to 98 percent of startups operate honestly.

The executive also praised SEBI and the National Stock Exchange (NSE) for their swift action, noting that it reflects the regulators' vigilance and readiness to intervene when necessary.

Beyond financial implications, Bikhchandani also expressed concern for the gig workers associated with BluSmart. "The worst hit are the cab drivers," he said. "They are not well-off and have suddenly found themselves without an income." Reports estimate that between 15,000 to 20,000 gig workers in the Delhi-NCR region have lost their livelihoods overnight.

Meanwhile, customers have taken to social media to express frustration over the halted services and the sudden loss of their wallet balances. In response, BluSmart has assured users that refunds for wallet balances will be processed within 90 days.