BluSmart Closure Leaves Users Stuck With Non-Refundable Wallet Money

BluSmart, once one of India’s most promising EV ride-hailing startups and a rival to Ola and Uber, has collapsed amid founder-led frauds, raising concerns over consumer fund safety.

“Do not expect any refund of your wallet money,” the company said in a post on X, addressing users whose funds remain stuck in digital wallets after BluSmart abruptly ceased operations.

The company was founded in January 2019 by Anmol and Puneet Singh Jaggi and Punit K. Goyal, branded itself as India’s first all-electric ride-hailing platform. Before shutting down in April 2025, it operated about 8,000 EVs, offering fixed fares, salaried drivers, and eco-friendly operations certified by Verra.

In February 2025, BluSmart reported purchasing 4,704 EVs for ₹568 crore, but SEBI later found ₹262 crore unaccounted for from the ₹830 crore raised. The company was downgraded to Grade D by Care Ratings after loan repayment delays.

By April 2025, SEBI ordered the Jaggi brothers to step down for diverting company funds to personal ventures. BluSmart halted operations soon after, and in July, the NCLT admitted an insolvency petition over a ₹1.28 crore loan default.

After its closure, users were unable to retrieve money from their wallets. BluSmart labeled these funds as “strictly non-refundable,” though courts could potentially overrule such terms.

BluSmart operated a closed wallet, usable only within its app. By contrast, semi-closed wallets like Paytm allow payments to multiple merchants, while open wallets let users withdraw or transfer money freely