Eversource Capital Offers to Buy BluSmart for ₹850 Crore: Report
In a significant development in the Indian startup ecosystem, investment firm Eversource Capital has reportedly made a non-binding offer to acquire ride-hailing startup BluSmart for around ₹850 crore. According to a CNBC-TV18 report, the deal is still in its advanced stages, and if finalized, it could mark a major exit for the founders of BluSmart, Anmol and Puneet Singh Jaggi.
The potential deal comes at a time when BluSmart has suspended its operations following a probe launched by the Securities and Exchange Board of India (SEBI) into the Jaggi brothers and their firm Gensol Engineering. The probe is reportedly investigating allegations of financial irregularities and mismanagement at BluSmart and its parent company, Gensol Engineering.
Under the proposed deal, the Jaggi brothers are likely to be asked to step down from their roles at BluSmart, according to sources cited in the CNBC-TV18 report. The report also suggests that Eversource Capital is looking to acquire a significant minority stake in BluSmart, with the option to increase its holding in the future.
BluSmart was founded in 2017 by Anmol and Puneet Singh Jaggi, with the aim of revolutionizing the ride-hailing industry in India. The startup had gained significant traction, with a strong presence in several major cities across the country. However, its growth was halted abruptly when SEBI launched the probe into the company’s operations.
The probe was reportedly triggered by concerns over the financial management and governance practices at BluSmart and Gensol Engineering. The Jaggi brothers had faced allegations of siphoning off funds from the companies for personal use and misusing the company’s assets.
The proposed acquisition by Eversource Capital could provide a lifeline to BluSmart, which has been struggling to stay afloat since the probe was launched. The investment firm is known for its interest in acquiring stakes in Indian startups that have the potential for growth and scalability.
Eversource Capital has a strong track record of investing in Indian startups, with a portfolio that includes companies such as BYJU’s, Ola, and Paytm. The firm has also been actively involved in the Indian startup ecosystem, providing strategic guidance and support to its portfolio companies.
The acquisition of BluSmart by Eversource Capital could also mark a significant exit for the Jaggi brothers, who had founded the company with the aim of creating a ride-hailing giant in India. The brothers had invested significant personal resources in the company, and their exit could provide a significant return on their investment.
However, the deal is still subject to several conditions, including due diligence and regulatory approvals. The Jaggi brothers would need to relinquish their control over the company, which could be a challenging task given their emotional attachment to BluSmart.
The proposed acquisition of BluSmart by Eversource Capital is a significant development in the Indian startup ecosystem, highlighting the interest of investors in acquiring stakes in Indian startups that have the potential for growth and scalability. As the startup ecosystem continues to evolve, we can expect to see more such deals in the future.
