BluSmart investors are considering a $30 million investment to revive the Indian cab-hailing start-up, which halted operations last month due to a probe into Gensol Engineering, its primary EV lessor.
The proposed investment will be treated as unsecured debt and aimed at fixing the startup’s operational liabilities, including pending dues and employee salaries.
According to media reports, BluSmart’s investors with pro rata rights, including BP Ventures and Switzerland-based ResponsAbility, started discussing the resolution last week. Anmol Singh Jaggi, Co-Founder, BluSmart, has verbally agreed to resign from its board, subject to assurance he will not face any future legal action from the company’s investors.
The investors plan to purchase Jaggi’s shares at par, request private lenders to write off a portion of the loans, and inject additional funds to resume operations.
It must be noted that the suspension of BluSmart’s service has affected riders looking for EVs, its investors, and its 600 employees, who did not receive their salaries at least until March.
