ED Detains BluSmart Cofounder, PB Fintech’s Healthcare Dreams & More

Now, ED Detains BluSmart’s Cofounder

In a surprise action, the Enforcement Directorate (ED) has detained Puneet Singh Jaggi, one of the two Gensol promoters, from a hotel in New Delhi.

Agency Knocks On Gensol’s Doors: Puneet was detained after the ED conducted raids at multiple premises linked to Gensol in Delhi, Gurugram and Ahmedabad. While the EPC company’s promoters have been in the dock for stock manipulation, debt defaults, misleading credit rating agencies, and siphoning off funds, the ED raids were linked to foreign exchange violations. 

SEBI’s Gensol Exposé: Last week, a SEBI order revealed that the duo misutilised Gensol’s funds in a fraudulent manner and treated the capital as their piggybank and diverted loan proceeds (secured from Power Finance Corporation and IREDA) towards acquiring assets in the personal names of the promoters, their relatives, or through shell entities linked to the group.

Mahadev App Links Surface: Surrounded by controversies, the Jaggi brothers are also under the ED scanner in connection with the ongoing probe into the illegal betting app scam. The directorate, which recently froze over 5 Lakh shares of Gensol, suspects that the tainted funds involved in the INR 20,000 Cr scam may have been used to manipulate the company’s share prices. 

Horizon Bleak For BluSmart: With ED now involved amid allegations of forex violations, the defunct ride-hailing startup is looking at an uncertain future. While Eversource Capital was previously said to be in talks to buy the EV ride-hailing company for INR 800 Cr-INR 1,000 Cr in a fire sale, the involvement of law enforcement agencies could spoil the deal. Then, there is the “worrisome” cash position of BluSmart and Grant Thornton’s audit of the ride-hailing startup’s books. 

As fresh revelations continue to emerge by the day, here’s a quick look at what’s happening at BluSmart and Gensol.

From The Editor’s Desk

Fabric IoT Raises $13.5 Mn: The EV fleet management solutions startup has raised the capital as part of its Series A round from American asset manager Nuveen. The startup manufactures sensors that help customers gather insights into EV maintenance.

PB Fintech’s Healthcare Dreams: The listed fintech major’s new healthcare subsidiary, PB Healthcare Services, is raising INR 1,461.60 Cr from its parent entity and partners as part of the first tranche of its seed round. 

Bachatt Bags $4 Mn: The fintech startup has raised the funding as part of its seed round, co-led by Lightspeed and Info Edge Ventures. Founded in November last year, the fintech platform enables individuals to grow their income by saving INR 100-200 daily.

HC’s Relief For OYO: The Rajasthan High Court expressed concern over misleading claims made by Samskara Resort against the hospitality major in the GST liability case. The court issued a notice to the resort MD and directed the police to submit a status report in two weeks.

Startups Under I-T Dept’s Scanner: The income tax department has sent notices to multiple startup investors and promoters and sought details on tax returns for the three years, bank account details and proof of income. 

VinFast’s $2 Bn India Push: The Vietnam-based EV maker is set to operationalise its Tamil Nadu plant by June this year. Part of the company’s $2 Bn India investment plan, the unit will enable VinFast to produce 1.5 Lakh EV units annually. 

Sarvam To Build AI For India? The IT ministry may incentivise Sarvam AI, Soket AI Labs, Gnani.ai and Gan.ai to build an indigenous foundational AI model. Sarvam AI could receive GPU computer power worth INR 200 Cr from the Centre. 

Satcom Players Seek Quick Spectrum Allotment: Industry bodies ISpA and BIF have urged DoT secretary to expedite the allocation of satcom spectrum, stating that ongoing delays are leading to wastage of valuable satellite resources that typically have a lifespan of 5-7 years.

Inc42 Startup Spotlight

 Can Zelio Disrupt India’s Mobility Sector With Its Affordable EVs?

India is witnessing a clean energy revolution as more and more people are adopting EVs. While there is no dearth of players in the space, a key factor that has roiled EV penetration in the country is affordability, especially in the electric two-wheeler segment. 

EVs That Fit In Your Budget: Founded in 2021 by Neeraj Arya, Zelio E Mobility sells a range of electric two-wheelers and e-rickshaws. But, its flagship product is Little Gracy. Priced at INR 49,500, the low-speed EV is designed for individuals aged between 10 and 18 years. 

The In-House Push: What also works for Zelio is its already-established factory located in Hisar and a growing network of more than 200 dealers. The startup is yet to raise any capital from external investors, which offers it the freedom to pivot and be agile as the market demands. 

The Burgeoning Indian EV Opportunity: Zelio is looking to tap into the country’s growing EV market, projected to breach the $132 Bn milestone by 2030. However, Zelio faces tough competition from the likes of Ola, Ather and legacy automobile players like Bajaj and TVS Motor. In this highly competitive environment, can Zelio E Mobility disrupt India’s mobility sector?