Blusmart to Reroute to Uber as a fleet partner amid a cash crisis led by Gensol: Report

In a big step, the Blusmart company, which works by electric riding, is scheduled to get out of its basic work, with plans to become a fleet partner in Uber, the Economic Times said. Blusmart shareholders have agreed to a plan to transfer her fleet from her platform to Uber, and the report was martyred with sources. The transition will occur in stages, starting from 700-800 cars, and as soon as it is completed, Blusmart will end up riding.

The move comes amid the financial turmoil facing the renewable energy company. Gensol Engineering and Blusmart were founded by Anmol Singh Jaggi and Puneet Singh Jaggi.

The decision comes at a time when Blusmart is facing severe financial difficulties, with a cash burning exceeding 20 rupees per month. The report said that the efforts made to raise 50 million dollars earlier this year did not succeed.

The company’s problems included more after liquidity problems in its main partner in Gensol Engineering.

Anmol Singh Jaggi and Puneet Singh Jaggi founded the company’s personal capital along with external financing.

On Tuesday, the Securities and Stock Exchange Council in India (SEBI) issued a temporary matter that prevents Jagais from holding major positions in Jennsol or participating in the stock market due to the failure of the alleged payment on loans that total 9.78 billion dollars (about 114 million dollars) from the Indian Renewable Energy Agency (Ireda) (Ireda). Money was used primarily to buy electric cars for Blusmart, and it has been claimed.

The Sebi investigation revealed that the promoters have transferred the company’s money to personal and relevant expenditures.

Blusmart seeks to obtain an investment between $ 15 and 20 million from Uber, depending on the successful transition of its fleet and meeting specific performance standards. Uber was in early discussions on the potential acquisition. However, the report quoted a Uber spokesman: “Uber works with a group of fleet operators and routinely involved with third parties to enhance access to passengers and drivers earn. We have no updates to share it at this time.”

Not only leads to financial pressure, but also through strategic transformations, as Blusmart restores its international operations, including the closure of the Dubai branch. Gensol Engineering has more than 5,000 of the 8,000 Blusmart vehicle, and a scheme has been canceled recently electric cars, reflecting the company’s operational challenges.

The riding industry in India is witnessing major changes, as companies such as Rabdo are increasing the market share at the expense of others. Blusmart, after collecting more than $ 150 million of financing since its establishment in 2019, is now facing the daily riding of the daily horseback, and it has declined to less than half of the peak numbers last year.

The main executives have left the disturbances, including Anirudh Arun, CEO of Blusmart Fleet, and Rishabh Sood, chief technology official. Tushar Garg resigned, formerly at Uber India, from his role as the chief business official. This driving exit raises questions about the future stability of the company and strategic guidance.