Daijiworld Media Network - Mumbai
Mumbai, Apr 21: Shark Tank India judge and Boat co-founder Aman Gupta has reacted to the BluSmart fiasco, calling it a “tough situation” that offers a much-needed ‘reality check’ for the Indian startup ecosystem. In a candid post on LinkedIn, the entrepreneur expressed deep concern over the collapse of the electric mobility startup and its wider implications on investor trust, employee morale, and consumer faith.
“The BluSmart situation is tough. Sad for everyone involved. But also, a much-needed reality check for all of us in the ecosystem,” Gupta wrote.
Gupta, who is also an angel investor, said he empathizes with all stakeholders impacted by the sudden shutdown—investors who lost money, employees who lost jobs, and customers left without a reliable cab-hailing alternative. “But more than that, this has also dented trust in the ecosystem. You’ll now hear: ‘Yaad hai BluSmart ke saath kya hua tha?!’” he added, hinting at how the collapse may serve as a cautionary tale in the industry.
Amid concerns that such incidents could undermine confidence in India’s startup landscape, Gupta offered a broader perspective, noting that even global multinational corporations have faced major failures. “One might say that that’s the damage we can’t afford. But, let’s zoom out. Even global MNCs have had their meltdowns. What matters is how we as a country and ecosystem bounce back.”
Gupta stressed that the integrity of a business begins with strong governance. “Compliance and ethics aren’t boxes to tick. They’re the foundation,” he said, adding that a company’s sustainability depends on practices often seen as mundane clean financial books, timely audits, and transparent reporting.
“Being a CA, I’ve seen this up close: Clean books, Timely audits, Transparent reporting. All so-called ‘not-so-cool tasks’ make businesses sustainable. Aur bachpan mein parents ne sikhaya tha Jo bhi karo, dil se karo. Par galat na karo. Same rule applies in business too,” he wrote.
Calling for stronger due diligence, not just in finance but also in culture and operations, Gupta reminded fellow founders that “EQ, IQ & GQ (Governance Quotient) sab important hote hai.”
“Because at the end of the day your vision matters. Your growth matters. But how you build matters just as much. Let’s use this as a reminder: To build not just fast, but right,” he concluded.
The post comes in the wake of BluSmart’s abrupt operational shutdown in major cities including Delhi-NCR, Bengaluru, and Mumbai after failing to secure additional capital. On April 16, the company began winding down services, leaving many passengers stranded.
The crisis further deepened with the Securities and Exchange Board of India (SEBI) accusing company promoter Anmol Singh Jaggi of fraud and forgery. The market regulator has barred Jaggi and his brother from any association with Gensol or trading in securities until further notice. SEBI alleged that the promoters treated company funds like a “piggy bank,” using them for unrelated party transactions and unconnected personal expenses.
The BluSmart incident has triggered widespread debate on governance standards and ethical conduct in India’s booming startup space, with Gupta’s post striking a chord across the entrepreneurial community.