BluSmart Faces SEBI Heat Over ₹262 Cr Fund Misuse; Bookings Halted
New Delhi | April 17, 2025 — Electric mobility startup BluSmart has landed in hot water as the Securities and Exchange Board of India (SEBI) initiates an investigation into allegations of fund mismanagement amounting to ₹262 crore. The regulatory probe has sent shockwaves through India’s startup ecosystem, prompting BluSmart to temporarily suspend ride bookings across platforms.
🔍 SEBI Investigation in Full Swing
According to sources close to the development, SEBI launched the inquiry following reports of irregular fund transfers, undisclosed transactions, and violations of investor agreements. Preliminary findings suggest that a substantial portion of the ₹262 crore, raised through equity and debt funding, may have been diverted towards undisclosed entities with little to no operational relevance to BluSmart’s core business.
SEBI is reportedly examining financial statements, transaction histories, and investor communication dating back to 2022. A forensic audit has also been commissioned.
🚗 Bookings Suspended Amid Uncertainty
In a sudden move, BluSmart announced the suspension of all bookings, citing “technical upgrades and operational restructuring” in a late-night statement. However, industry insiders believe this is directly linked to the ongoing probe and possible internal audits.
Many users took to social media to express confusion and frustration, as the BluSmart app and website currently show no availability for rides in key cities like Delhi-NCR and Bengaluru.
💸 Investor Concerns Mount
BluSmart, often hailed as India’s first all-electric ride-hailing platform, has raised over $100 million (approx. ₹830 crore) from investors including BP Ventures, Mayfield India, and Green Frontier Capital. The current controversy has led to heightened concerns among stakeholders, with some reportedly calling for an emergency board meeting.
A senior executive at one of the investing firms said, “We are in close contact with BluSmart’s leadership and await the outcome of the SEBI investigation. If there are breaches of trust or governance, corrective actions will be demanded.”
📉 Industry Impact
The controversy comes at a time when India is aggressively promoting electric mobility through government subsidies and public-private partnerships. Experts warn that the incident could shake investor confidence in the EV sector, especially startups dependent on foreign and institutional funding.
BluSmart’s Response
BluSmart has yet to issue a detailed clarification. A spokesperson issued a brief statement:
“We are cooperating fully with the regulatory authorities. Our priority remains transparency, compliance, and ensuring the trust of our customers and investors.”
What’s Next?
With SEBI’s probe underway, all eyes are on BluSmart’s next moves — whether it can address the allegations, resume operations, and restore stakeholder confidence. Meanwhile, regulatory authorities are expected to tighten scrutiny on startup fund usage going forward.
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