BluSmart’s Fire Sale Next, Startup Funding Tanks & More

BluSmart Stares At A Fire Sale

Climate-focussed PE firm Eversource Capital is in advanced talks to acquire the troubled EV ride-hailing startup BluSmart for INR 800-1,000 Cr ($90-120 Mn) — a 60% discount from its last known valuation of $300 Mn.

What’s On The Cards? Along with acquiring BluSmart, Eversource Capital plans to clear all its liabilities, including pending employee salaries — of course, if the deal goes through. 

The private equity firm plans to merge BluSmart with its existing EV portfolio company, Lithium Urban Technologies, and inject $100 Mn into the combined entity to support its growth. 

No Room Of The Jaggi Brothers: While still in the works, Eversource has one condition — BluSmart cofounders, the Jaggi brothers, will move out of the startup. Besides, Eversource wants Anmol Singh Jaggi to quit the board.

A Strategic Bargain? While paying for the arrears and outstanding may pinch the PE firm a bit, it sees strategic synergy in leveraging the troubled EV startup’s 8,000-strong fleet to strengthen its EV armada. 

Inside The Crisis: The EV ride-hailing major was thrust into uncharted waters earlier this month after SEBI, in a striking indictment, found that Jaggi brothers misled credit rating agencies and misutilised the listed company’s funds as their personal piggybank.

Just as this crisis was panning out, BluSmart suspended its cab-hailing services earlier this week. But, with creditors planning to take legal action, can a potential fire sale help BluSmart come out of this quagmire?

From The Editor’s Desk

Why Are VCs Bearish On Indic LLMs? According to Inc42’s latest investor survey, only 13% of the 75+ surveyed Indian investors consider investing in startups, working on building Indic-language LLMs, as a good opportunity. So, what’s holding them back?

Indian Startups Raised Just $65 Mn: Indian startups cumulatively raised a $65.3 Mn last week, 67% less than the $195.1 Mn raised in the preceding week. Garuda Aerospace and OfBusiness led the charts with $11.6 Mn funding each. 

Tech Stocks See Revival: Twenty-eight out of 32 new-age tech stocks under Inc42’s coverage gained in the range of 0.1% to over 20% last week. While Fino Payments Bank and Delhivery emerged as the biggest winners, RateGain and Veefin were the biggest losers. 

Zepto’s Make-Or-Break Moment: Founder and CEO Aadit Palicha said the funding winter, the Silicon Valley Bank (SVB) collapse and certain hiring mistakes almost brought the quick commerce platform to a near-collapse in the two-year period between 2022 and 2023.

Imarticus Sets Sights On D-Street: The profitable edtech is gearing up to file its DRHP in the next five months for an INR 750 Cr IPO. So, how did Imarticus Learning create a niche in the Indian edtech space, which has been in a flux for the past three years?

Electronic Component Scheme Soon? IT Minister Ashwini Vaishnaw said that the guidelines for the PLI scheme for electronics components have been finalised and an online portal will be launched soon. The scheme will look to boost domestic production and create jobs.

Xpressbees’ FY24 Loss Widens: The logistics unicorn’s consolidated net loss grew 10.8% to INR 199.9 Cr in FY24 from INR 180.4 Cr in the previous fiscal year. On the other hand, operating revenues jumped 11.8% YoY to INR 2,831.3 Cr in FY24. 

NTT-Neysa To Build AI Data Centre: The Japanese IT service giant and the AI cloud company have inked a pact with the Telangana government to set up an INR 10,500 Cr AI data centre cluster in Hyderabad. The 400 MW data centre cluster will be powered by 25,000 GPUs.

Inc42 Startup Spotlight

Can Iyaso Revolutionise Speech Therapy With AI?

An estimated 5 Mn people in India suffer from communication disabilities, including stammering and slurring. While traditional speech therapy is valuable, it requires long sessions multiple times a week, which can be difficult to fit into busy schedules. 

Democratising Speech Therapy: To bring back the confidence of millions facing speech impediments, Viraj Kulkarni founded Iyaso in 2023. The startup aims to make speech therapy more accessible and effective through Eloquent, an AI-powered speech training programme. 

With just 10 minutes of daily practice, Eloquent claims to provide structured guidance to help users build confidence and improve fluency at their own pace.

Iyaso’s AI Stack: Iyaso leverages AI to offer personalised feedback, progress tracking, and even mood checks to support emotional well-being. The platform uses proven techniques like fluency shaping, stuttering modification, and cognitive restructuring. It allows users to practise in real-world situations and track their progress over time.

Scaling Up Gradually: The Malpani Ventures-backed startup claims to have catered to more than 15,000 people across 150 countries since its launch. Going forward, Iyaso has set its eyes on further refining its “digital therapeutics” platform, expanding its reach and shoring up revenues. 

With the AI arsenal in its kitty, can Iyaso democratise speech therapy for millions of Indians suffering from speech impediments?