“In 10 years, everyone in India should be able to get a BluSmart EV cab within 5 minutes.” This is what Anmol Jaggi, cofounder of BluSmart — and chairman and MD of listed company Gensol Engineering — said in a press conference, as recently as February 2025.

It’s only been a month, but the turnaround has been swift. Since then, publicly listed Gensol Engineering has come under the scanner due to debt and liquidity issues. And this controversy has also cast a shadow on BluSmart’s future.

That’s because Gensol was BluSmart’s largest fleet supplier till last year, and in turn, BluSmart was Gensol’s largest customer. With Gensol now looking to raise INR 600 Cr to fix these issues. It also announced a stock split in the ratio of 1:10 (further drop in share price), even as its shares have plummeted approximately 55% since the beginning of March.

What exactly happened at Gensol that threatens to also consume BluSmart, one of India’s first EV-only ride-hailing startups? To start, let’s unpack the connection between the two companies, both founded by brothers Anmol Jaggi and Puneet Jaggi.

The Gensol Connection

In January 2025, Gensol Engineering’s EV financing arm Gensol EV Lease Pvt Ltd sold around 3,000 EV cars, which were being operated by BluSmart, to a refrigerator company – Refex Industries’ wholly owned subsidiary — Refex Green Mobility. This acquisition was primarily done to bring down Gensol’s debt by INR 315 Cr.

Well, the acquisition seemed normal until, in March’s first week, credit agencies ICRA and CARE downgraded Gensol’s credit rating to D (default/junk) based on the feedback received from the company’s lenders about the ongoing delays in debt servicing.

Besides, ICRA accused Gensol Engineering of submitting falsified data and highlighted that BluSmart has recently delayed its non-convertible debentures (NCD) which can have an adverse impact on the “financial flexibility and capital raising ability” of Gensol Engineering.

Consequently, the company’s shares have tanked and continue to free fall.

Amid these challenges, BluSmart decided to discontinue its Dubai operations from April 2025 as it has decided to focus only on the Indian market.

Sources also indicated there has been a top-level exodus in BluSmart, which was reported by The Morning Context this week. Chief executive officer Anirudh Arun, chief business officer Tushar Garg, chief technology officer Rishabh Sood, and vice president Priya Chakravarthy have all exited. Nandan Sharma, who was earlier a vice president, will take over as the chief executive officer.

Even as Gensol Engineering tries to raise capital to beat its debt issues, there could be ramifications on BluSmart as well, given the business links between these two entities and its promoter group.

Gensol And BluSmart: Same Same, But Different

Founded by the brothers in 2007, Gensol Engineering primarily operates as an EPC (Engineering, procurement, and construction) company but things began changing sometime in 2018 as the company looked to diversify into the ride-hailing business.

Sensing an opportunity to disrupt the space with electric vehicles, BluSmart began operating under the Gensol umbrella.

Indeed, the company was incorporated as Gensol Mobility Private Limited in October 2018, before its name was changed a year later to Blu-Smart Mobility Private Limited. The three BluSmart subsidiaries also started life with the Gensol branding front and centre, before their names were also changed.

Along the way, the Jaggi brothers brought Punit K Goyal – who had earlier founded solar energy........

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