Sanjeev Bikhchandani on BluSmart: ‘Drivers are worst hit’

The sudden shutdown of BluSmart Cabs — an electrical mobility startup as soon as lauded for its eco-friendly fleet and tech-enabled service — has raised considerations about lapses in company governance and the vulnerability of gig economy employees.

Weighing in on the problem, Sanjeev Bikhchandani, founding father of Info Edge, which runs Naukri.com, expressed each disappointment as a buyer and concern over the broader implications for the sector.

“As a buyer, I’m upset — the cab providers have been actually good,” Bikhchandani informed ANI. “However the enterprise must be viable. Company governance have to be sound for any firm to maintain.”

His feedback observe BluSmart’s suspension of operations in areas throughout Delhi-NCR, Bengaluru, and Mumbai.

Regulatory warmth

The corporate’s troubles intensified after the Securities and Exchange Board of India (Sebi) barred BluSmart’s cofounders — Anmol Singh Jaggi and Puneet Singh Jaggi — from elevating capital, citing alleged irregularities in prior funding rounds. The Sebi order has introduced BluSmart’s governance practices below scrutiny, at the same time as the corporate scrambles to discover strategic options.

“The Sebi report must be taken significantly; it was the end result of a correct investigation,” Bikhchandani added, underscoring the position of regulatory oversight in defending the ecosystem.

Additionally Learn: BluSmart crisis: Green mobility’s red flag is giving HNIs bond bluesGig employees within the crosshairs“The worst hit are the cab drivers,” mentioned Bikhchandani. “They aren’t well-off and have immediately discovered themselves with out revenue.”

Whereas acknowledging the seriousness of the scenario, he urged traders and the general public to keep up perspective. “There are 1.6 lakh registered startups in India — and if we embody unregistered ones, round 7–8 lakh. There might be some unhealthy actors, however 95–98% of startups are sincere,” he mentioned.

As ET reported earlier, BluSmart’s operations had considerably declined amid the unfolding disaster involving Gensol Engineering, additionally promoted by the Jaggi brothers. By early April, the corporate was working solely round half of the 25,000–30,000 every day rides it had at its peak final yr.

Widening fallout

The disaster deepened additional this week when Anmol and Puneet Jaggi resigned from their directorial roles at Gensol Engineering — the engineering, procurement, and building (EPC) agency they co-promoted.

A regulatory probe discovered that Rs 977.75 crore in loans from state-run lenders IREDA and PFC — earmarked for the procurement of 6,400 electrical autos — had been misused. Of the sanctioned quantity, solely 4,704 autos have been acquired, with over Rs 207 crore reportedly unaccounted for.

Additionally Learn: Gensol promoters quit board; BluSmart begins shutting operations