In the wake of the BluSmart crisis, entrepreneur and Shark Tank India investor Aman Gupta took to social media to share his thoughts on the situation, calling it a “much-needed reality check” for the entire startup ecosystem.
Gupta expressed his sympathy for everyone involved in BluSmart’s downfall, including investors, founders, employees, and customers. He shared in his post that the crisis was a tough situation for all, as “investors lost money,” “founders lost years of hard work,” “employees lost stability,” and “customers lost a service they genuinely loved.”
“What’s even more concerning,” he added, “is that this incident has dented trust in the ecosystem. You’ll now hear: ‘Yaad hai BluSmart ke saath kya hua tha?’”
However, Gupta took a broader perspective, reminding followers that even global multinational companies have experienced their own challenges and meltdowns. “What matters is how we as a country and ecosystem bounce back,” he said. “The Indian startup ecosystem is resilient. We always rise stronger. And we will this time too.”
In his message to founders, Gupta emphasized the importance of compliance and ethics, stating that they are not mere “boxes to tick,” but the very foundation of a sustainable business. He highlighted his personal experience as a Chartered Accountant, advising businesses to focus on clean books, timely audits, and transparent reporting.
Gupta drew on lessons from his childhood, quoting his parents: “Jo bhi karo, dil se karo. Par Galat na karo.” He pointed out that these values extend into business—where not just growth and vision matter, but also how one builds that vision. “EQ, IQ & GQ (Governance Quotient) are all important,” he noted.
He ended his post with a rallying cry for more founders to push for real due diligence, not just in finance but in culture, operations, and responsibility.
“Let’s use this as a reminder: To build not just fast, but right,” he concluded.
BluSmart crisis
Electric cab-hailing platform BluSmart halted its services across Delhi-NCR, Bengaluru, and Mumbai on Thursday following a crackdown on its co-founder over alleged misuse of funds at an affiliated company.
The BluSmart app, which operates over 8,000 electric taxis in the three cities, ceased taking bookings on Wednesday evening and remained non-operational the next day. The sudden suspension has left thousands of drivers without work and frustrated customers voicing concerns on social media.
The company only stated in an email to customers that it had temporarily closed bookings, without providing further details.
The suspension follows recent regulatory actions involving the Jaggi brothers, co-founders of BluSmart’s affiliate Gensol. The Securities and Exchange Board of India (SEBI) banned the brothers from the stock market earlier this week and initiated a forensic investigation into their renewable energy company, focusing on allegations that funds meant for electric vehicle procurement were instead used to buy luxury apartments.