Blusmart Crisis: “A much-needed reality check,” said Aman Gupta. Call for clean books and transparent reports of news to founders
As Blusmart's business stagnates among metropolitan metropolis, entrepreneur and shark tank Indian investor Aman Gupta has made a heartfelt explanation on the issue, calling it a “much-needed reality check” for Indian startups.
On social media, Gupta expanded his support to everyone, as the consequences of the closure of Blusmart. “Investors lost money,” founders lost years of hard work,” employees lost stability, and customers lost services they really like,” he wrote, summarizing the ripple effects of the crisis.
The popular electric taxi platform stopped services in Delhi NCR, Bangalore and Mumbai on Thursday after it cracked down on regulatory oversight of alleged abuse of funds related to member companies. Blusmart, which operates a fleet of more than 8,000 electric taxis, has stopped bookings on Wednesday night. The next day, the app was still non-functional, stranded by thousands of drivers and customers.
The company's silence didn't help. Blusmart said it “temporarily closed the booking” in an email to customers, without providing more details.
ASO Reading:Gensol Crisis: How Gensol-Blusmart sponsors transfer funds to promote their luxury lifestyle
SEBI breaks Gensol co-founder
Reports show that the disruption stems from the SEBI action against the Jaggi brothers, who co-founded Gensol, a key member of the EV lease to Blusmart. Market regulators accused them of revoking purchases of more than Rs 2,000 crore of electric car, allegedly transferring funds to luxury apartments. SEBI banned the brothers from entering the stock market and ordered a forensic investigation.
Please read also: Blusmart Cab Services stays at Delhi NCR in Bangladesh City, Mumbai as co-founder of Sebi Lens
“This has eroded trust for the ecosystem”: Aman Gupta
During this storm, Gupta's words caused many chords in the entrepreneurial community. He added: “What is even more worrying is that this incident has weakened trust in the ecosystem. Now you hear: 'Yaad Hai Blusmart Ke Saath Kya Hua hua tha?'”
Blusmart is in a difficult situation. Feel sad for everyone involved. And, in an ecosystem, we all need a much-needed reality check.
I know what this feels like:
– Investors lost money
– Founder lost years of hard work
– Employees lose stability
– The customer lost their service…– Aman Gupta (@Amangupta0303) April 17, 2025
But his message was not all melancholy. Gupta notes that even global giants face rough spots. “What matters is that we are bounced as a country and ecosystem,” he wrote. “The ecosystem of Indian startups is resilient. We are always stronger. We will, this time, too.”
Using his background as a chartered accountant, Gupta called on the founders to go beyond the pursuit of growth and keep a close eye on fundamentals: compliance, clean books, timely audits and transparent reporting. “They are not just 'boxes of boxes', but the foundation of sustainable business,” he stressed.
He also shared a lesson from his upbringing: “Jo Bhi Karo, Dil SeKaro. ParGalat na Karo.” He said a value also works in the business. “EQ, IQ and GQ (government provider) are all important.”
Finally, he urged the founders to require strict due diligence, not financially, but culturally, operationally and accountable.
Gupta concluded: “Let’s use this as a reminder: not only be fast, but also right.”
