Eversource Capital, one of India’s leading climate-focused investors, has made a non-binding offer of ₹1,200 crore for the embattled electric ride-hailing service BluSmart, according to people familiar with the matter. However, ongoing regulatory investigations involving BluSmart’s sister concern, Gensol Engineering, could complicate the potential deal.
Sources indicated that Eversource might reconsider pursuing the transaction due to probes into Gensol Engineering, from whom BluSmart leases the majority of its electric vehicle fleet. Instead, Eversource is reportedly exploring alternative structures, including direct negotiations with Gensol’s lenders such as Power Finance Corp (PFC) and Indian Renewable Energy Development Agency (IREDA), who have financed a significant portion of BluSmart’s fleet.
Currently, Gensol has leased approximately 5,000 electric vehicles to BluSmart. A potential slump sale to Eversource is also under discussion among BluSmart’s investors, a move that would protect the acquirer from any liabilities related to BluSmart’s operations.
The offer made by Eversource is subject to due diligence, sources added.
In a letter to BluSmart shareholders earlier this month, BluSmart cofounder Anmol Singh Jaggi emphasized the importance of the deal, writing:
“BluSmart is at a critical juncture and must make informed and timely decisions to ensure business continuity, preserve stakeholder value, and chart a sustainable path forward.”
The news of Eversource’s interest was first reported by Inc42 on Saturday.
Amid these developments, BluSmart has begun onboarding its vehicles onto rival ride-hailing platform Uber to sustain operations, according to sources.
Eversource Capital, known for partnering with the founders of Lightsource BP to invest in climate-related ventures in India, has a strong track record in the clean mobility sector. Lightsource BP’s founders recently sold the company to British energy major BP, whose venture arm BP Ventures is also an investor in BluSmart.
However, BluSmart’s promoters Anmol Singh Jaggi and Puneet Singh Jaggi are currently facing a forensic investigation by the Securities and Exchange Board of India (SEBI) over alleged fund diversion and corporate governance issues at Gensol Engineering. The Jaggi brothers are also promoters of Gensol.
When contacted for comments, Eversource Capital did not respond. Anmol Jaggi, in a text message, dismissed ET’s queries, saying it was “wrong information.”
Eversource recently exited a major investment in Ayaana Renewable Power, selling its 17% stake to a consortium led by NTPC and ONGC at an enterprise value of $2.2 billion. Other significant Eversource investments in India include Green Cell Mobility, which operates electric buses, and Lithium Urban Technologies, an electric car fleet operator.
Prior to Eversource’s offer, BluSmart had been negotiating a deal that would involve a payout of around ₹400 crore to existing Gensol investors, coupled with a fresh capital infusion of approximately ₹800 crore by Eversource to stabilize operations.
BluSmart’s financial troubles have intensified in recent months. Efforts to raise capital from existing investors, including BP Ventures, had previously fallen through, pushing the company into a cash crunch. The company failed to pay salaries to its employees for March, and it is now at risk of lenders potentially classifying its loans as defaults, as reported by ET on April 21.
With BluSmart’s survival hanging in the balance, the coming weeks will be crucial in determining the future of one of India’s most prominent electric mobility startups.