This CEO Reveals How He Called Out BluSmart Founders 2 Years Ago

Long before the actions of BluSmart co-founders Anmol Jaggi and his brother Punit Jaggi came under scrutiny, a founder-CEO of a wellness platform called out the duo in a WhatsApp group.

Sumeet Kapur, CEO and founder of Wellcure, said he had to quit a WhatsApp group of over 150 founders, all because he exposed the "bullshit" of the e-cab service company.

In a post on LinkedIn, Mr Kapur wrote, "2 years back, I had to exit a WhatsApp group of 150+ founders because I called out the bullshit of BluSmart founders on the group."

"The leaders of the investing group did not like it and wrote me 1 on 1 messages telling me not to say such things for a respectable company like BluSmart. I respected their views and exited the group," he added.

Mr Kapur mentioned that he usually avoided public criticism, but in this case, the behaviour of the BluSmart team went too far. He added the WhatsApp group was created for sharing ideas, but instead of that, it was constantly filled with promotional media articles about the company.

The articles looked like paid PR and were being shared every week, he said.

Mr Kapur wrote, "I had joined that group to get growth ideas from other founders, but the only thing that was getting posted there was media articles of BluSmart going places, every week."

He continued, "Many founders know that it takes Rs 7 to 15 thousand (of cash or personal UPI payment) to get an article written in any leading publication. They were just getting 1 useless article published almost every week and sharing it in every Founders group I was part of. It was a sheer waste of time for other founders."

Next, he narrated a personal incident, describing it as a nightmare and highlighting the company's poor handling of customer feedback. 

Mr Kapur wrote, "And when I would write to the BluSmart CEO & co-founder for the nightmare experience me & my family had from BluSmart cab, there would not even an acknowledgement to the message, despite us being connected on 2-3 Founders Whatsapp groups and maybe on LinkedIn too."

"These were enough signs to know what's going to happen soon," he added.

He compared BluSmart with GoMechanic, PhableCare, Byjus, and BharatPe - the companies that faced downfall and encountered major struggles. Mr Kapur said that these companies were fast-growing, the reason investors couldn't take a step back.

He wrote, "Gomechanic, Phablecare, Byjus, BharatPe and now BluSmart - It was quite easy to notice early signs of unethical practices, but because they had grown fast, even investors have to become a party to what's happening."

"Investors are not idiots to not see these problems, but a lot of times, such companies become a tiger that you are riding but can't get down from, for the fear of getting eaten yourself," Mr Kapur added.

Before concluding the post, he also shared the signs that help in identifying companies that might be involved in unethical practices. 

He wrote, "Excessive PR articles with probabilistic words like 'may, might, could, looking to, etc.' These are journalists' ways for writing any future claims or lies without any accountability." 

"Too many public posts boasting about growth. If you are growing, the relevant people will know it through your financial reports; there is no need to make too much noise about it."

He added, "Too much too soon - everyone knows this rule, but we ignore it. Something growing very fast is either a lie or will come down at the same speed."

BluSmart has temporarily suspended its operations in Delhi NCR, Mumbai, and Bengaluru. Although the app is available on the Play Store, it doesn't allow users to book or schedule rides until May 7.

The company has appointed Grant Thornton for a forensic audit following instructions from the Securities Exchange Board of India (SEB). The regulatory body found that the Jaggi brothers allegedly diverted and misused funds meant to buy cars.

In its report, SEBI said there was a "complete breakdown of internal controls" and ordered a forensic audit at Gensol, which procured EVs and then leased them to BluSmart.

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