I am disappointed, Info Edge's Sanjeev Bikhchandani expresses surprise on failure of BluSmart

ANI April 19, 2025 356 views

Sanjeev Bikhchandani expressed shock over BluSmart's sudden collapse despite its strong customer reputation. He emphasized SEBI's findings on financial irregularities while defending India's broader startup ecosystem. The shutdown has left thousands of drivers unemployed, raising concerns about gig worker protections. Bikhchandani urged stakeholders not to let this incident overshadow India's thriving startup culture.

"The worst hit are the cab drivers; they do not have social security..." - Sanjeev Bikhchandani
Mumbai, April 19: Sanjeev Bikhchandani, Founder and Executive Vice-Chairman of Info Edge on Saturday expressed his surprise over the failure of BluSmart, an Indian ride-sharing company, headquartered in Gurugram.

Key Points

1

Bikhchandani disappointed by BluSmart shutdown despite good service

2

SEBI flagged fund diversion in Gensol Engineering

3

15,000-20,000 drivers left jobless overnight

4

Stresses 95-98% of Indian startups remain honest

Speaking to ANI, Sanjeev Bikhchandani, Founder and Executive Vice-Chairman of Info Edge said, "As a customer, I am disappointed because the cab services were really good... The business, obviously, must be viable. Corporate governance has to be good for a company to sustain"

He said, "The SEBI report needs to be taken seriously; it was produced after a proper investigation. While it is a setback for the startup ecosystem, we must understand that there are 1.6 lakh registered startups in India, and if we include the unregistered ones, there are nearly 7-8 lakh startups. There will be some bad actors, but for the most part, 95-98 per cent of startups are honest."

Recently, market regulator SEBI flagged issues related to alleged fund diversion and document falsification in Gensol Engineering Ltd, which owns BluSmart as its subsidiary.

The abrupt shutdown of BluSmart, once hailed as a promising electric mobility startup in the Delhi-NCR region, has sent ripples through India's thriving startup ecosystem. Customers, investors, and especially thousands of drivers have been left grappling with the fallout.

Blusmart, known for its clean, punctual, and eco-friendly electric cab services, had earned a strong reputation among urban commuters.

Bikhchandani expressed regret over the shutdown but emphasised that this incident should not overshadow the honesty and potential of the broader Indian startup community.

"There are 1.6 lakh registered startups in India, and potentially over 5 to 6 lakh including unregistered ones. A few bad actors must not taint the entire ecosystem," he said.

He highlighted that SEBI and NSE's swift action against the alleged misappropriation of funds in Blusmart was not only necessary but confidence-building.

"It shows that regulators are active, vigilant, and ready to act when needed," he noted. A major point of concern raised by Bikhchandani was the impact on Blusmart's workforce.

He highlighted that the real tragedy is for the drivers--15,000 to 20,000 people who may now be out of work overnight.

"The worst hit are the cab drivers; they do not have social security, they are not well-off, around 15-20000 drivers are suddenly out of a job in Delhi-NCR. It is a tragic setback for the investors as well," he added.

Reader Comments

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Priya S.
This is so disappointing! I used BluSmart regularly and loved their service. The drivers were always professional and the cars were spotless. Really hope something can be done to help those 20,000 drivers now without jobs 😔
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Rahul K.
While I agree with Mr. Bikhchandani's overall sentiment, I think we need stronger safeguards for employees in startups. Drivers shouldn't be left high and dry because of corporate mismanagement. The startup ecosystem needs to mature in this aspect.
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Ananya P.
Had my first ride with BluSmart last month and was blown away! Such a shame to see them go. Hope another company can fill this gap soon - we need more eco-friendly transport options in our cities 🌱
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Vikram J.
The real victims here are the drivers. Many probably took loans to buy those electric cars. SEBI needs to ensure the founders can't just walk away from their responsibilities. This isn't just about investors losing money.
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Sneha M.
I appreciate Mr. Bikhchandani's balanced perspective. Yes, this is bad, but let's not paint all startups with the same brush. Most are trying to build something meaningful. Just need better checks and balances in place!
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Karan D.
Used BluSmart for airport rides every time. Never had a bad experience. This shutdown came out of nowhere! Makes me wonder what else is going on behind the scenes that we don't know about 🤔

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Tags:
Sanjeev Bikhchandani BluSmart Info Edge SEBI startup failure electric cabs Gensol Engineering
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