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Even as BluSmart’s wheels grind to a halt in Delhi, Mumbai, and Bangalore, and Gensol finds itself ensnared in SEBI’s crosshairs for alleged fund diversion and stock manipulation, Ashneer Grover finds himself dragged into the storm.
In a candid exchange with News X correspondent Bryan Thomas, Grover, the outspoken founder of Third Unicorn, addressed SEBI’s findings that Rs 50 lakh from Gensol-linked funds ended up in his startup. His stance? Blunt, unfiltered, and utterly Grover-esque.
Q1. Can you help us understand your business dealings with Anmol Jaggi and his firms?
A: “I am the ‘loss bearer’ / at receiving end of the current scenario having personally invested ₹1.5 cr in BluSmart in 2022 and ₹0.25 cr in Matrix sometime in 2023/24.”
Q2. What was the nature of your agreement?
A: “My investments are driven by my signing deed of adherence to existing Share Holder’s Agreement signed as signed by many other shareholders. I never negotiate separate agreement with any founder in any of my investments. No one does.”
Q3. Did you see any red flags?
A: “I do not follow the progress / MIS of any of my invested companies and I have 90 of them. Once I’ve invested – I leave things with Founders to run the show and don’t even call / meet to discuss their business.”
Q4. What about SEBI linking Rs 50 lakh to Third Unicorn?
A: “I don’t have to justify anything… The act of him taking the money is wrong – his use of funds is not. You journalists need to understand this rather than jump in excitement to sensationalise things.”
Q5. How can such misuse be prevented?
A: “If any organisation is giving funds for specific use – it’s best to give it in escrow account… money is by nature fungible.”
Q6. Has BluSmart been over-glamourised?
A: “BluSmart is a great service… it was a great brand built against impeccable and differentiated service and cleaner much better cars.”
Q7. Is this a warning sign for India’s startup ecosystem?
A: “There can’t be a generalization… It’s a time for low raise and gradual build up of businesses. Investors need to slow down as well.”
