Gensol Engineering Ltd. is grappling with serious issues that have triggered a steep drop in its share price. The Securities and Exchange Board of India (SEBI) has prohibited the company's founders, Anmol Singh Jaggi and Puneet Singh Jaggi, from occupying executive roles due to alleged loan defaults amounting to nearly ₹9.78 billion. These funds were primarily used to purchase electric vehicles for BluSmart, an EV ride-hailing startup owned by the Gensol founders.
Celebrity Investments in BluSmart: A Double-Edged Sword
Deepika Padukone: The Early Believer
In July 2019, Deepika PadPadukone'smily mobile office invested in BluBluSmart's million angel round. At that time, BluSmart was a nascent startup in Gurugram, aiming to challenge Ola and Uber with eco-friendly, all-electric cabs. Her early backing significantly boosted the company's public image and media attention.
Why it mattered:
DeeDeepika'svestment signaled trust in sustainable mobility, a cause resonating with many millennials. It also helped BluSmart attract other backers like Hero MotoCorp and Micromax.
What happened later:
By 2025, BluSmart announced the shutdown of its ride-hailing app and pivoted to supply electric vehicles as a fleet partner to Uber. This strategic shift means the business model Deepika initially supported has fundamentally changed, potentially impacting the returns on her early-stage investment.
MS Dhoni: The Game-Time Backer
In July 2024, MS Dhoni invested through his family office in BluSmart's 00 crore ($24 million) funding round, coinciding with the company's selling phase. At that juncture, BluSmart operated over 6,000 EVs, partnered with Tata Power, and reported ₹390 crore annual revenue.
Why it mattered:
Dhoni's involvement enhanced BluSmart's standing, investor confidence, and media coverage. The funds were intended to fuel infrastructure growth and EV fleet expansion.
What happened later:
Within nine months, BluSmart faced a cash crunch. Its leasing partner, Gensol Engineering, came under SEBSEBI'srutiny for alleged fund misuse. Consequently, BluSmart discontinued its app-based service and pivoted to Uber. For Dhoni, who invested later, the prospects of returns now appear uncertain.
The Bigger Lesson
Even high-profile endorsements cannot guarantee a startup's success. Deepika Padukone and MS Dhoni invested in BluSmart, believing in its green mobility vision. However, with the company exiting its ride-hailing business and transitioning to fleet services for Uber, their investments face an uncertain future. After losing money in a market bubble, Sir Isaac Newton once remarked, "I can calculate the motion of heavenly bodies, but not the madness of people." Investing, timing, and execution often outweigh fame or vision.
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