Uber might be on the verge of a strategic move in India. According to reports, the American mobility giant is in early talks to acquire BluSmart Mobility, the Gurugram-based all-electric cab operator backed by Gensol Engineering — a company currently facing significant financial pressure.
The news comes shortly after Gensol Engineering announced a debt reduction plan on March 5, aiming to cut debt by ₹665 crore. The plan includes the sale of 2,997 electric vehicles (valued at ₹315 crore) and a subsidiary (valued at ₹350 crore). A partial sale of its EV fleet could involve Uber, marking a significant shift for BluSmart’s parent company.
If the acquisition goes through, it could bolster Uber’s electric vehicle footprint in India and drive consolidation in the ride-hailing sector, the Economic Times reported. Uber currently operates Uber Green, its all-electric ride service, in the same cities where BluSmart is active — Delhi-NCR, Mumbai, and Bengaluru — creating a natural synergy between the two companies.
BluSmart operates a fleet of over 5,000 electric vehicles, primarily sourced from Tata Motors and MG Motor. The fleet is owned by Gensol Engineering and leased to BluSmart, which also sources vehicles from independent owners and manages a network of EV charging stations in NCR and Bengaluru.
The potential sale comes amid Gensol Engineering’s ongoing financial struggles. On March 13, Gensol approved a ₹600 crore fundraising plan — ₹400 crore via Foreign Currency Convertible Bonds (FCCBs) and ₹200 crore through promoter-issued warrants — to stabilise its balance sheet. The company is also exploring a possible end to its leasing arrangement with BluSmart, with plans to sell the vehicles to Chennai-based Refex Industries.
Gensol’s liquidity issues have led to a debt rating downgrade by ICRA and CARE, and its stock has plummeted over 75% from its June 2024 high. Allegations of falsified documents have further clouded its outlook, though the company has denied these claims and set up a review committee to investigate. Gensol is promoted by BluSmart co-founder Anmol Singh Jaggi, who, along with fellow co-founder Punit Goyal, holds a 24% stake in BluSmart. Jaggi’s brother, Puneet Singh Jaggi, who also co-founded Gensol, reportedly holds a 5.7% stake.
Uber’s potential acquisition could give it a stronger foothold in India’s competitive ride-hailing market, where Bengaluru-based Rapido — backed by WestBridge Capital — has been expanding aggressively into three- and four-wheeler segments, surpassing $1 billion in annualised GMV.
Over the past five years, Uber has sharpened its focus on mobility, exiting food delivery in 2020 by selling Uber Eats to Zomato. It has also invested heavily in India’s ride-hailing sector, including a $30 million investment in Mumbai-based Everest Fleet last September after leading a $20 million funding round.
While Fortune India has not been able to verify the acquisition talks independently, a deal with BluSmart would not only strengthen Uber’s EV play in India but could also ease Gensol’s financial strain, marking a pivotal moment for both companies.
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