Sabeer Bhatia, co-founder of Showreel and the iconic creator of Hotmail, has commented on the ongoing discussions surrounding BluSmart, the Indian electric mobility startup recently scrutinised for alleged financial irregularities.
In a social media post, Bhatia highlighted the rising trend of media-driven narratives influencing public perception before all facts are fully established. Without directly confirming or denying the allegations against BluSmart, which include reported misuse of company funds for personal luxuries such as golf club memberships and high-end apartments, Bhatia emphasised the dangers of premature judgments affecting the broader startup ecosystem.
“There’s been a lot of noise around BluSmart and alleged misuse of funds. Whether they’re true or not is still unclear,” Bhatia wrote. He expressed deeper concern about the tendency to generalize isolated incidents, stating, “We’re judging the ENTIRE startup ecosystem before the facts are even on the table.”
Bhatia stressed that while any proven misconduct should be “investigated and addressed,” it would be reckless to paint every founder or startup with the same brush. Highlighting the inherent risks and boldness involved in entrepreneurship, he warned that excessive public scrutiny could stifle innovation and discourage big thinking among emerging entrepreneurs.
“Public perception matters. Trust fuels capital. And both die fast in a climate of paranoia,” Bhatia noted. He urged the media to wield its power responsibly, striking a balance between holding companies accountable and avoiding sensationalism.
“Let’s fix what’s broken but let’s not burn down what’s being built,” he concluded, calling for a more measured approach that safeguards the spirit of innovation while ensuring accountability.
Bhatia’s statements are timely because startup founders across India are also facing growing public and regulatory scrutiny. His observations remind us that there is an ever-delicate balance between essential regulation and maintenance of the entrepreneurial spirit essential for the nation’s economic development.
At the time of publishing, no formal findings have been made public regarding the allegations against BluSmart.
Also Read: Aman Gupta on BluSmart Crisis: Lessons for Indian Startups
