Eversource Capital has offered to acquire BluSmart, which is in trouble because of its close connection with Gensol, for around INR 800 Cr to INR 1,000 Cr
Eversource has put up a condition that cofounders Anmol Singh Jaggi and Puneet Singh Jaggi move out of the EV ride-hailing startup
Eversource plans to merge BluSmart with its portfolio startup Lithium Urban and infuse $100 Mn in the combined entity
Climate-focussed PE firm Eversource Capital is in talks to acquire BluSmart, which is in trouble following the crisis at its related entity Gensol, sources told Inc42.
Eversource has offered to acquire the EV ride-hailing startup for around INR 800 Cr to INR 1,000 Cr ($90 Mn to $120 Mn), the sources added. This would be a decline of about 60% from BluSmart’s last known valuation of $300 Mn.
“They (Eversource) are going to acquire BluSmart, including its liabilities, and intend to resume BluSmart’s operations at the earliest. Eversource will clear the salaries of the employees and other remaining dues,” one of the sources told Inc42.
Following the acquisition, the PE firm plans to merge BluSmart
with its portfolio startup Lithium Urban Technologies. It will infuse around $100 Mn in the combined entity after the merger, the sources added.
Founded in 2014, Lithium Urban is a B2B startup that operates a fleet of four-wheeler passenger EVs and associated charging infrastructure. Eversource acquired a majority stake in the startup in 2022.
“BluSmart is almost 4X of the revenue and fleet size of Lithium. Eversource’s acquisition is therefore a pure strategic move,” another source said.
Eversource is a joint venture between Everstone Capital and the UK-based Lightsource bp.
BluSmart and Eversource didn’t respond to Inc42’s queries on the deal till the time of publishing this story.
No Role For Cofounders Jaggi Brothers
Eversource has put up a condition that BluSmart cofounders, Anmol Singh Jaggi and Puneet Singh Jaggi, move out of the startup. Besides, it also wants Anmol Singh Jaggi to step down from BluSmart’s board, the sources said.
Anmol Singh Jaggi, Sophia Isabella Nadur, Inderpreet Singh Wadhwa, and Dharmichand Sunil Kumar sit on the board of BluSmart currently.
Earlier this week, BluSmart suspended its cab-hailing services. In a mail sent to its customers, the startup said that it would refund the money in their wallet if it didn’t resume its operations in the next 90 days.
Founded in 2019, BluSmart also counts Punit Goyal as its cofounder. It has raised a total funding of about $180 Mn to date from investors like bp Ventures, responsAbility Investments AG, Sumant Sinha, MS Dhoni Family Office, among others.
BluSmart found itself in trouble after Jaggi brothers, who are also the promoters of Gensol Engineering, were found to have misutilised the listed company’s funds.
On Tuesday (April 15), markets regulator SEBI barred the brothers from holding the position of a director of Gensol and from the securities market
The regulator, in its interim order, also said that Gensol attempted to mislead credit rating agencies, lenders and investors by submitting forged documents.
