India’s electric vehicle (EV) ecosystem, BluSmart Mobility, a leading EV fleet operator, is undergoing a significant restructuring amid financial challenges. The company, which has been grappling with economic uncertainties, recently witnessed the resignation of several key executives, including CEO Anirudh Arun, Chief Business Officer Tushar Garg, Chief Technology Officer Rishabh Sood, and Vice President of Experience Priya Chakravarty.
Leadership Changes in BluSmart Mobility
According to reports, Nandan Sharma has been appointed as the new CEO. Before this, Sharma served as the Vice President of Business and Operations at BluSmart. The leadership changes are part of a broader restructuring effort as the company aims to stabilise its financial standing.
Financial Challenges and Restructuring
The leadership changes come at a critical time when BluSmart’s parent company, Jito Engineering, is moving to terminate its existing fleet leasing agreements. Jito Engineering is selling 2,997 electric vehicles (EVs) to Chennai-based Reflex Green Mobility, which constitutes 34% of BluSmart’s total fleet of 8,700 EVs. Following the sale, these vehicles will be leased back to BluSmart. Reflex will also assume Jito’s outstanding debt of ₹315 crores. However, the deal is still pending regulatory approval.
In spite of the restructuring, BluSmart has ensured that its Delhi-NCR, Bengaluru, and Mumbai ride-hailing services will operate uninterrupted. The company operates around 50 charging hubs with over 6,300 charging points and maintains an average of seven trips per day per vehicle.
Ongoing Challenges and Future Prospects
Company’s restructuring process is further complicated by two rating downgrades in the recent past, having graded the debt of Jito Engineering ‘default,’ putting pressure on the existing financial restructure. BluSmart, in contrast, records excellent monthly revenues of ₹70 crores and a projected revenue for the year at ₹840 crores. The net debt at BluSmart is ₹280 crores while debt stands at ₹980 crores as on March 2025.
The company management is optimistic even in the midst of trouble, pointing to the promise of BluSmart Assured leasing plans, which have attracted nearly 1,000 EVs worth ₹150 crores of investors. The plan is viewed as a strategic one to boost the fleet and give investors confidence.
Industry Impact
Industry participants closely monitor the BluSmart scandal because it highlights the financial vulnerabilities of emerging EV companies in India. Given the growing focus on eco-friendly transportation, BluSmart’s ability to overcome these obstacles will be critical to its success in the cutthroat EV market.
