‘Act swiftly to weed out bad seeds...’: Amitabh Kant appeals to VCs, investors amid BluSmart fiasco
Highlighting the importance of ethics and good governance, he wrote, “As our startups scale into large businesses, we must pledge to uphold ethics and good governance as non-negotiable — on par with business growth.”
- Apr 20, 2025,
- Updated Apr 20, 2025 2:58 PM IST
Amid the BluSmart fallout, Amitabh Kant, former CEO of NITI Aayog, appealed to VCs and investors to stay alert to early red flags and said it is a collective responsibility to ensure that instances like the BluSmart episode remain isolated exceptions.
In a post on X (formally Twitter), Kant wrote, “India’s startup ecosystem has seen a meteoric rise — but it is still evolving.
It is our collective responsibility to ensure that lapses in corporate governance and instances of personal greed, like the BluSmart episode, remain isolated exceptions. They must not tarnish the spirit of innovation and ambition that defines our entrepreneurial journey.”
Highlighting the importance of ethics and good governance, he wrote, “As our startups scale into large businesses, we must pledge to uphold ethics and good governance as non-negotiable — on par with business growth. Funding can always return, but reputation and credibility, once lost, are gone for good.
A special appeal to VCs and investors: stay alert to early red flags and act swiftly to weed out the bad seeds.”
“We owe it to India to realise the promise of startups as the nation’s largest job creators,” he concluded.
BluSmart, India's first all-electric ride-hailing service, has come under scrutiny for lapses not just in its operations but also in the decision-making of its investors and venture capital backers.
While the startup was hailed for its sustainability push and early mover advantage in the EV mobility space, questions are now being raised about the due diligence of VCs who poured in large sums without a clear path to profitability or clarity on operational scalability.
Several investors appeared to have overlooked fundamental challenges — such as high fleet maintenance costs, charging infrastructure gaps, and limited demand concentration in select urban pockets.
Meanwhile, in a breather for the troubled EV ride hailing company, Eversource Capital is reportedly in advanced discussions to acquire it for approximately Rs 850 crore. According to a CNBC-TV18 report, the investment firm has made a non-binding offer and is expected to reach a final decision within the next two weeks.
Amid the BluSmart fallout, Amitabh Kant, former CEO of NITI Aayog, appealed to VCs and investors to stay alert to early red flags and said it is a collective responsibility to ensure that instances like the BluSmart episode remain isolated exceptions.
In a post on X (formally Twitter), Kant wrote, “India’s startup ecosystem has seen a meteoric rise — but it is still evolving.
It is our collective responsibility to ensure that lapses in corporate governance and instances of personal greed, like the BluSmart episode, remain isolated exceptions. They must not tarnish the spirit of innovation and ambition that defines our entrepreneurial journey.”
Highlighting the importance of ethics and good governance, he wrote, “As our startups scale into large businesses, we must pledge to uphold ethics and good governance as non-negotiable — on par with business growth. Funding can always return, but reputation and credibility, once lost, are gone for good.
A special appeal to VCs and investors: stay alert to early red flags and act swiftly to weed out the bad seeds.”
“We owe it to India to realise the promise of startups as the nation’s largest job creators,” he concluded.
BluSmart, India's first all-electric ride-hailing service, has come under scrutiny for lapses not just in its operations but also in the decision-making of its investors and venture capital backers.
While the startup was hailed for its sustainability push and early mover advantage in the EV mobility space, questions are now being raised about the due diligence of VCs who poured in large sums without a clear path to profitability or clarity on operational scalability.
Several investors appeared to have overlooked fundamental challenges — such as high fleet maintenance costs, charging infrastructure gaps, and limited demand concentration in select urban pockets.
Meanwhile, in a breather for the troubled EV ride hailing company, Eversource Capital is reportedly in advanced discussions to acquire it for approximately Rs 850 crore. According to a CNBC-TV18 report, the investment firm has made a non-binding offer and is expected to reach a final decision within the next two weeks.