Eversource Offers Rs 1,200 Crore for BluSmart Amid Gensol Controversy
Climate-investing company Eversource Capital is said to be in late-stage negotiations to buy electric vehicle ride-hailing firm BluSmart, which suspended operations recently after its sister company, Gensol Engineering, was targeted by the government for regulatory action.
As per a report by Inc42, Eversource has made an offer worth between Rs 800 and Rs 1,000 crore for BluSmart well below the startup's last valuation of $300 million (approximately Rs 2,561 crore). The investment company intends to merge BluSmart with its current portfolio company, Lithium Urban Technologies, and infuse another $100 million (approximately Rs 834 crore) into the combined entity.
The possible takeover, however, is also in the backdrop of a regulatory battle. BluSmart co-founders Puneet Singh Jaggi and Anmol Singh Jaggi—who are also Gensol's CEOs were recently banned by the Securities and Exchange Board of India (SEBI) for suspected financial impropriety, such as diversion of funds and misuse of capital set aside for EV purchases. SEBI accused the duo of diverting funds towards personal expenses, including the purchase of a luxury flat.
Following SEBI’s action, BluSmart suspended its services, leaving thousands of drivers unemployed and prompting customer concerns about refunds for unused ride credits. Several top executives have since resigned, further clouding the company’s future.
Sources indicate that Eversource has made it a condition of the deal that the Jaggi brothers step down from BluSmart’s board.
Established in 2018, Eversource Capital is a collaboration between Everstone Capital and UK-based Lightsource BP, engaged in putting money into sustainable infrastructure in India. The conclusion of the deal hangs in doubt since probes are ongoing.
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