Social ,20 Apr 2025

Eversource Capital in Talks to Acquire BluSmart Amid Financial Turmoil

India's electric mobility revolution is undergoing a pivotal moment as Eversource Capital, a sustainability-focused investment firm, is reportedly in advanced discussions to acquire BluSmart, the country's pioneering all-electric ride-hailing platform. The potential acquisition comes amid BluSmart's escalating financial woes and governance challenges, marking a significant chapter in India's EV startup story.

 

Background: BluSmart’s Rise and Roadblocks

Founded in 2019, BluSmart quickly emerged as a key player in India’s green mobility space, offering a fully electric ride-hailing service in urban hubs like Delhi NCR and Bengaluru. Backed by high-profile investors such as BP Ventures and Mayfield India, the company raised over $100 million in equity and debt funding, and gained recognition for operating a fleet of electric vehicles, supported by an integrated charging infrastructure.

However, 2024 brought a wave of turbulence. Internal allegations of financial mismanagement, delayed employee payments, and lapses in corporate governance surfaced, disrupting operations and prompting investor concern. According to media reports, the company halted ride services temporarily due to cash flow constraints and backend operational issues.

 

Eversource Capital Steps In

Eversource Capital, a joint venture between Everstone Group and Lightsource BP, is known for its investments in clean energy and sustainable infrastructure through its Green Growth Equity Fund (GGEF). Its potential acquisition of BluSmart is being pegged at a valuation of ₹800 to ₹1,000 crore (~$95 to $120 million)—a significant markdown from BluSmart’s previous estimated valuation of $300 million.

The investment firm is reportedly aiming for a full buyout, including liabilities, and plans to revive BluSmart's operations, pay off dues (including salaries), and bring the company back on a stable trajectory. As part of the restructuring, BluSmart’s co-founders are expected to step down, ushering in a new leadership and governance structure.

 

What This Means for the EV Industry

The move by Eversource Capital could become a defining case study in crisis recovery within India’s startup ecosystem—particularly in capital-intensive sectors like EV mobility. Some key takeaways and implications:

1. Rebuilding Trust: If successful, the acquisition will not only restore stakeholder trust in BluSmart but also offer reassurance to investors wary of governance issues in Indian startups.
2. Market Stability: For the EV ride-hailing sector, this could be a stabilizing move. BluSmart's revival might keep competition alive, ensuring consumer choice and innovation in the industry.
3. Policy and Regulation: The incident may also prompt regulators and industry bodies to tighten corporate governance norms, especially for mobility startups dealing with high volumes of public funds and operational complexity.
4. Investor Sentiment: Other EV startups may feel the ripple effects—investors may become more cautious but also see opportunity in distressed yet promising businesses.

 

Looking Ahead

India’s electric mobility future depends not just on innovative tech and policy support, but also on sound financial management, transparency, and resilient business models. The BluSmart episode—and Eversource Capital’s timely intervention—highlights both the fragility and potential of the ecosystem.

While the deal is yet to be officially confirmed, all eyes are now on how Eversource will reshape BluSmart’s trajectory and what lessons the broader startup ecosystem can draw from this development.