India’s ambitious electric mobility journey faced a jolt this week as BluSmart came under SEBI scanner for fund diversion, leading the startup to suspend operations. Once touted as a clean alternative to Uber and Ola, BluSmart’s future is now uncertain after revelations of financial misconduct by its co-founders, Anmol and Puneet Singh Jaggi.
The Securities and Exchange Board of India (SEBI) has accused the Jaggi brothers of siphoning off loans intended for electric vehicle procurement. Instead, the funds were reportedly used to buy a ₹26 lakh golf kit and a luxury apartment in Gurugram’s ultra-premium The Camellias.
Celebrity Capital Tainted
Adding to the intrigue, BluSmart under SEBI scanner for fund diversion has sent shockwaves through the investor community, especially given the list of star-studded backers. MS Dhoni, Deepika Padukone, Ashneer Grover, and Sanjiv Bajaj are among the prominent names who put their money—and reputations—behind the venture.
Deepika Padukone was one of the earliest believers, investing $3 million through her family office in 2019. The same round saw participation from Sanjiv Bajaj and JITO Angel Network.
In 2024, Dhoni’s family office, along with Sumant Sinha of ReNew Power and a Swiss firm, helped BluSmart raise $24 million in a pre-series B round. Ashneer Grover also revealed he invested ₹1.5 crore in BluSmart and ₹25 lakh in Matrix Partners, but now finds himself under scrutiny as SEBI claimed ₹50 lakh was rerouted to his startup Third Unicorn Pvt Ltd.
Suspended Operations and SEBI’s Crackdown
“We’ve decided to temporarily close bookings on the BluSmart app,” read an official email to users on April 17, two days after the SEBI order. The regulatory body’s interim directive prohibits the Jaggi brothers from accessing capital markets or holding directorial positions in any firm.
The financial nexus between BluSmart and Gensol Engineering—also led by the Jaggi brothers—adds complexity to the case. Gensol had borrowed nearly ₹978 crore from IREDA and PFC between 2021 and 2024, funds which were earmarked for the purchase of 6,400 electric vehicles. SEBI alleges a major chunk of this was misappropriated.
Trust Gap in the Startup Ecosystem?
As BluSmart under SEBI scanner for fund diversion becomes national headlines, concerns grow about due diligence in the startup ecosystem. Investor trust, especially from celebrity and institutional backers, could take a hit unless regulatory compliance is strictly enforced.
While the full fallout is yet to be seen, one thing is clear: BluSmart’s case could become a watershed moment for corporate governance in India’s startup landscape.
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