Cash-strapped startup BluSmart is planning to exit its core cab business and transition into a fleet partner for Uber, nearly six years after it entered the ride-hailing space in 2019.

The company’s shareholders have approved a phased transition of its fleet to Uber, starting with 700–800 cars in the coming weeks. The exact timeline is still being finalised.

BluSmart is reportedly burning over Rs 20 crore every month. Its founders, Anmol Singh Jaggi and Puneet Singh Jaggi have been infusing funds with support from external investors. However, with their other venture, Gensol Engineering, facing a major debt crisis, fresh capital for BluSmart has become harder to secure.

This financial crunch has reportedly caused delays in salary payments and raised concerns among investors.

BluSmart began in 2019 as a fleet operator listing electric vehicles on Uber. Later that year, it launched its ride-hailing platform. In 2022, it placed an order for 10,000 EVs with Tata Motors, followed by a $50 million funding round in 2023. But as the Gensol crisis intensified in 2025, BluSmart started exploring a return to fleet operations.

Gensol Engineering is scrutinised over alleged falsified debt documents and high debt levels. The company has denied any wrongdoing and launched an internal investigation.

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