Eversource looks to buy BluSmart for ₹800-1K cr, seeks Jaggi brothers' exit

Eversource Capital, a climate-focused investment platform, is reportedly in talks to acquire EV ride-hailing startup BluSmart, which has suspended operations following a crisis at its sister company, Gensol Engineering.

 

Private equity firm Eversource has offered to buy BluSmart for ₹800-1,000 crore, according to a report by Inc42. The deal, if completed, would value BluSmart at least 60 per cent below its last known valuation of $300 million (around ₹2,561 crore). 

Eversource plans to merge BluSmart with its portfolio company, Lithium Urban Technologies, and inject about $100 million into the combined entity after the merger, the report said.

 

 

Founded in 2018, Eversource Capital is an India-based climate investment platform and a 50:50 joint venture between Everstone Capital, a private equity firm with a presence in India and Southeast Asia, and UK-based Lightsource BP, a global solar energy developer.

 

As part of the deal, it’s said, Eversource wants BluSmart co-founders Anmol Singh Jaggi and Puneet Singh Jaggi to step down from the board.  The Jaggi brothers are at the centre of the crisis at Gensol after being barred from the securities market by the Securities and Exchange Board of India (Sebi) for alleged fund diversion and fraudulent practices.

 

Sebi alleged the duo misused funds meant for electric vehicle procurement for personal expenses, including the purchase of a luxury apartment.

 

Following regulatory action, BluSmart halted operations, leaving thousands of drivers out of work and raising concerns among customers over refunds for unused ride credits. Several senior executives have also resigned amid the financial misconduct allegations.

 

Gensol shares have dropped 84 per cent since the start of the year. Bloomberg data shows more than 70 per cent of the company’s market value was wiped out in under two weeks.  Also Read | Gensol-BluSmart saga: Investors call for better governance in startups