According to Inc 42, Eversource Capital is positioning itself to acquire troubled EV ride-hailing startup BluSmart at a substantial discount, while stipulating the exit of its embattled founders.
Opportunistic Acquisition Amid Regulatory Turmoil
Eversource, a climate-focused investment platform jointly owned by Everstone Capital and UK-based Lightsource BP, has offered to purchase BluSmart for approximately ₹800-1,000 crore ($90-120 million). This valuation represents a steep 60% decline from BluSmart’s previous $300 million valuation, highlighting the company’s weakened negotiating position following operational suspension tied to regulatory actions against its sister company, Gensol Engineering.
The timing of Eversource’s offer demonstrates classic private equity opportunism—moving decisively when distressed assets become available at favorable valuations. BluSmart’s operational crisis stemming from SEBI’s actions against cofounders Anmol and Puneet Singh Jaggi has created a buyer’s market situation that Eversource appears ready to exploit.
Strategic Integration with Existing Portfolio
What makes this potential acquisition particularly noteworthy is Eversource’s plan to merge BluSmart with its existing portfolio company, Lithium Urban Technologies. Despite being the smaller entity with approximately one-quarter of BluSmart’s revenue and fleet size, Lithium Urban provides Eversource with established infrastructure in the B2B electric mobility space.
The proposed $100 million capital injection following the merger suggests Eversource sees significant synergistic value in combining these complementary business models—BluSmart’s consumer-facing operations with Lithium Urban’s B2B focus and charging infrastructure expertise.
Jaggi Brothers’ Exit A Prerequisite
Perhaps most telling about Eversource’s approach is its non-negotiable condition that the Jaggi brothers step away from BluSmart’s operations and board. This stipulation directly addresses the reputational and regulatory challenges stemming from SEBI’s allegations against the brothers for fund diversion and fraudulent practices at Gensol Engineering.
By insisting on a clean break from the Jaggi brothers’ leadership, Eversource is implementing a classic private equity governance reset—separating potentially valuable operational assets from leadership issues that created vulnerability in the first place. This move would effectively quarantine BluSmart from ongoing Gensol controversies while allowing Eversource to install experienced management aligned with its investment thesis.
Market Implications and Consolidation Play
If completed, this acquisition would represent significant consolidation in India’s nascent but promising EV mobility sector. The combination of BluSmart’s consumer-facing platform with Lithium Urban’s B2B operations could create a vertically integrated electric mobility powerhouse capable of serving multiple market segments.
For Eversource, the deal offers an accelerated path to scale in the sustainable transportation sector—acquiring BluSmart’s fleet, technology platform, and market presence at a fraction of what organic growth would cost in time and capital.
Charging Ahead
The immediate priorities for Eversource would likely include stabilizing BluSmart’s operations, addressing outstanding liabilities including employee compensation, and rebuilding customer confidence. Reports indicate plans to resume operations “at the earliest,” suggesting Eversource recognizes the time-sensitive nature of preserving BluSmart’s market position and preventing customer attrition.
For an investment platform focused on climate solutions, the potential acquisition represents both financial opportunism and strategic alignment—rescuing a troubled green mobility player while expanding its footprint in sustainable transportation at a compelling valuation.
