Mumbai (Maharashtra) [India], April 19 (ANI): Sanjeev Bikhchandani, Founder and Executive Vice-Chairman of Info Edge on Saturday expressed his surprise over the failure of BluSmart, an Indian ride-sharing company, headquartered in Gurugram.

Speaking to ANI, Sanjeev Bikhchandani, Founder and Executive Vice-Chairman of Info Edge said, 'As a customer, I am disappointed because the cab services were really good... The business, obviously, must be viable. Corporate governance has to be good for a company to sustain'

He said, 'The SEBI report needs to be taken seriously; it was produced after a proper investigation. While it is a setback for the startup ecosystem, we must understand that there are 1.6 lakh registered startups in India, and if we include the unregistered ones, there are nearly 7-8 lakh startups. There will be some bad actors, but for the most part, 95-98 per cent of startups are honest.'

Recently, market regulator SEBI flagged issues related to alleged fund diversion and document falsification in Gensol Engineering Ltd, which owns BluSmart as its subsidiary.

The abrupt shutdown of BluSmart, once hailed as a promising electric mobility startup in the Delhi-NCR region, has sent ripples through India's thriving startup ecosystem. Customers, investors, and especially thousands of drivers have been left grappling with the fallout.

Blusmart, known for its clean, punctual, and eco-friendly electric cab services, had earned a strong reputation among urban commuters.

Bikhchandani expressed regret over the shutdown but emphasised that this incident should not overshadow the honesty and potential of the broader Indian startup community.

'There are 1.6 lakh registered startups in India, and potentially over 5 to 6 lakh including unregistered ones. A few bad actors must not taint the entire ecosystem,' he said.

He highlighted that SEBI and NSE's swift action against the alleged misappropriation of funds in Blusmart was not only necessary but confidence-building.

'It shows that regulators are active, vigilant, and ready to act when needed,' he noted. A major point of concern raised by Bikhchandani was the impact on Blusmart's workforce.

He highlighted that the real tragedy is for the drivers--15,000 to 20,000 people who may now be out of work overnight.

'The worst hit are the cab drivers; they do not have social security, they are not well-off, around 15-20000 drivers are suddenly out of a job in Delhi-NCR. It is a tragic setback for the investors as well,' he added. (ANI)