Business entertainment TV show, Shark Tank India judge, and Boat co-founder, Aman Gupta, in his social media post on LinkedIn, highlighted that the BluSmart crisis serves as a reality check for others in the startup ecosystem.
“The BluSmart situation is tough. Sad for everyone involved. But also a much-needed reality check for all of us in the ecosystem,” said Aman Gupta in his post.
The angel investor also expressed empathy for the investors who lost money, the employees who lost their jobs, and the customers who lost a cab-hailing service. He said that this incident had also “dented” the ecosystem.
“But more than that, this has also dented trust in the ecosystem. You’ll now hear: ‘Yaad hai Blusmart ke saath kya hua tha?!’” said Gupta.
‘Damage we can’t afford’
Aman Gupta also emphasised how global multinational companies (MNCs) have had their meltdowns, and even though people might say that this incident will cause damage that the Indian startup can’t afford, the key factor is how the system bounces back after the issue.
“And, one might say that that’s the damage we can’t afford. But, let’s zoom out. Even global MNCs have had their meltdowns. What matters is how we as a country and ecosystem bounce back,” he said.
He also showed his confidence in the Indian startup ecosystem, and highlighted how the compliance and ethical factor in a company is not just another tick box, but the ‘foundation’ of the system.
“The Indian startup ecosystem is resilient. We always rise stronger. And we will this time too. For all founders, here’s the biggest takeaway: Compliance and ethics aren’t boxes to tick. They’re the foundation,” said the Shark Tank India judge.
The ‘not-so-cool tasks’
Aman Gupta also said that the so-called “not so cool tasks” like maintaining a clean book, carrying out timely audits, and maintaining transparency are the only ways to keep businesses sustainable.
“Being a CA, I’ve seen this up close: Clean books, Timely audits, Transparent reporting. All so called “not so cool tasks” make businesses sustainable. Aur bachpan mein parents ne sikhaya tha – Jo bhi karo, dil se karo. Par Galat na karo. Same rule applies in business too,” he said.
He urged the startup founders to push more towards “due diligence” activities and not just in finance but also in other aspects of the business like the company culture, along with operations and responsibility.
“EQ, IQ & GQ (Governance Quotient) sab important hote hai. I hope more founders push for real due diligence, not just in finance, but in culture, operations, and responsibility. Because at the end of the day your vision matters. Your growth matters. But how you build matters just as much,” he said.
“Let’s use this as a reminder: To build not just fast, but right,” said Aman Gupta, highlighting the BluSmart crisis.
BluSmart Crisis
Several passengers in the cities of Delhi-NCR, Bangalore, and Mumbai were unable to book cabs through the ride-hailing app BluSmart. The company started to wind down its operations on Wednesday, April 16, after failing multiple attempts to raise fresh capital for the business.
Moreover, the company promoter, Anmol Singh Jaggi, is currently facing a fraud and forgery accusation by the Securities and Exchange Board of India (Sebi).
The markets regulator has barred the brothers involved in the fraud from holding any Gensol position or trading in securities until further notice.
“The promoters were running a listed public company as if it were a proprietary firm. The company’s funds were routed to related parties and used for unconnected expenses, as if the company’s funds were promoters’ piggy bank,” said Sebi in an official statement.
