Gensol-Blusmart saga: Cautious investors call for better startup governance

Investors feel that the Gensol-Blusmart saga could potentially slow down funding momentum in the short term

At a time when startup funding was gaining momentum in India, allegations of financial misappropriation and lack of transparency at Gensol Engineering and BluSmart Mobility has once again shook the investors’ confidence, with many underscoring the need for better corporate governance to build viable businesses and a strong startup ecosystem.

 

Some of the investors that Business Standard spoke to agreed that this could potentially slow down funding momentum in the short term.

 

A founding partner at a venture capital firm that backed BluSmart in its early stage said the episode is likely to make investors more cautious about putting money