Evera Cabs Proposes Lease of 1,000 EVs From BluSmart Amid Insolvency Proceedings

SUMMARY

Evera Cabs has proposed a structured monthly lease, allowing it to onboard the cabs in a phased manner based on their working condition and operational capacity

Evera acquired nearly 220 EV cabs previously operated by BluSmart in May this year, followed by an additional 280 cabs, taking its fleet size to 500

The startup aims to expand its recently launched B2C hourly rental service by onboarding the new EV cab fleet.

Amid ongoing insolvency proceedings, BluSmart’s rival startup Evera Cabs has proposed a lease arrangement with affiliate Gensol Engineering’s interim resolution professional (IRP) and committee of creditors to onboard 1,000 EVs previously owned by the troubled startup.

Evera Cabs’ cofounder and CEO Nimish Trivedi told Inc42 that the startup has proposed a structured monthly lease, allowing it to onboard the cabs in a phased manner based on their working condition and operational capacity.

As per a report by The Economic Times, Gensol Engineering was initially looking to sell off the cabs. Evera, however, opted to lease the vehicles, as it allows the startup to scale quickly without heavy upfront capital commitments.

“Many of these cars are already financed by lenders and leasing them ensures immediate utilisation of idle assets. This approach also aligns with our asset-light model, where we focus more on service delivery and customer experience rather than locking up capital in vehicle ownership,” Trivedi said.

It’s worth noting that Evera acquired nearly 220 EV cabs previously operated by BluSmart in May this year, followed by an additional 280 cabs, taking its fleet size to 500. If the proposal to lease the 1,000 cabs goes through, the EV startup expects to nearly double its existing fleet size.

Evera aims to expand its recently launched B2C hourly rental service by onboarding the new EV cab fleet.

Founded in 2019 by Trivedi, Rajeev Tiwari and Vikas Bansal, Evera Cabs initially targeted B2B customers for its EV-based ride-hailing offerings. Later, it entered the B2C segment with airport-to-city and city-to-airport cab services. On the B2B side, it serves clients such as EY and Orix and competes with the likes of EEE-Taxi.

Since inception, Evera has raised more than $11 Mn, backed by Germany-based IEG Investment Banking Group, Thailand-based Direct Capital and Singapore’s Westova Global, among others.

Tracking BluSmart and Gensol’s Troubles

BSE-listed Gensol Engineering ran into trouble in April after SEBI found that its founders, Anmol Singh Jaggi and Puneet Singh Jaggi, misled regulators, credit rating agencies (CRAs), lenders, and investors by using company funds for personal purposes.

The crisis stemmed from BluSmart’s default on non-convertible debentures, which were tied to Gensol’s loans. When CRAs requested term loan statements from Gensol, the company reportedly provided information for all lenders except IREDA and PFC.

Gensol had availed INR 977.8 Cr in term loans from IREDA and PFC between FY22 and FY24. Of this, INR 663.9 Cr was used to purchase 6,400 EVs leased to BluSmart.

Following SEBI’s investigation, the Jaggi brothers were barred from holding director or key managerial positions at Gensol. The order also triggered a crisis for Gensol, which is now under bankruptcy proceedings.

BluSmart, meanwhile, is also undergoing insolvency proceedings. In July, the Ahmedabad bench of the National Company Law Tribunal (NCLT) admitted an insolvency plea against BluSmart over unpaid dues of INR 1.28 Cr. The EV ride-hailing company also suspended operations in April and subsequently shut down its app.