Electric cab-hailing startup, BluSmart Mobility is under growing financial stress, with March salaries delayed due to limited cash flow. The delay is just one among the many challenges being faced by the company, which operates in Delhi NCR, Bengaluru and Mumbai.
Employees were informed that payments will be cleared in phases, starting with those in the lowest pay grades. Full disbursement is expected by the end of April. BluSmart reportedly shut down its Dubai services in March and cancelled plans to expand into Saudi Arabia.
These moves indicate a pullback from earlier global ambitions. Add to this the pressure of Refex Industries terminating a major deal. The agreement, which involved acquiring about 3,000 EVs from Gensol Engineering leased to BluSmart, was scrapped recently. This is a major setback for BluSmart’s plans of scaling up operations.
There are changes happening within the company’s senior ranks too. Anirudh Arun, CEO ; Tushar Garh,chief business officer; Rishabh Sood, chief technology officer; and Priya Chakravarthy, vice president, left the firm last month, that is, March. Nandan Sharma, former VP, is expected to step in as the new CEO.
In February, BluSmart defaulted on bonds worth Rs 30 crore. While the company played down the matter at the time, the salary delays are now raising doubts about financial stability. Earlier this year there were reports of Uber’s likelihood of acquiring the firm, which the BluSmart has reportedly denied.
Meanwhile, BluSmart is trying its best to overcome its challenges and retain talent.
