**BluSmart Mobility Faces Cash Crunch, Defaults on ₹30 Crore NCD Payment**
Gurugram-based BluSmart Mobility encountered a cash crunch that led to a default on a ₹30 crore non-convertible debenture (NCD) payment. The electric cab-hailing service, currently in the midst of a fundraising round, has since settled the obligation and is working to reassure bondholders. Sources familiar with the situation revealed that the company defaulted on the bond payment in early February due to financial constraints. Over the weekend, BluSmart repaid the NCD holders, although the initial delay prompted the trustee to invoke a “cross-default” clause, necessitating a meeting on March 17.
A cross-default means that if a borrower fails to meet one payment on time, it defaults on all obligations. The ₹30 crore NCD payment, which carries a coupon rate of 12%, was originally due on February 3. By February 21, the company had repaid approximately ₹18 crore, with the remaining amount settled by February 22.
Founded in 2019 by Anmol Jaggi, Puneet Jaggi, and Puneet Goyal, BluSmart primarily operates its EV cab-hailing and charging services in Delhi and Bengaluru, recently expanding to Mumbai’s airport route. Anmol Jaggi is also associated with Gensol Engineering and Matrix Gas.
According to one source, the delay in repayment was attributed to a capital crunch and a heavy payment schedule, as the company typically has an annual NCD repayment obligation of around ₹150-160 crore, with a significant portion due in December and January. The next NCD repayment is not scheduled until November 2025, which the source indicated would allow for a more manageable repayment timeline in the future.
Unlike bank loans, where a 90-day grace period is standard, even a single day’s delay in bond repayments can trigger a default. As the company was securing funds to meet its obligations, Catalyst Trusteeship Ltd, the bond trustee, sent an email to debenture holders, stating that the failure to pay the principal amount had activated the cross-default clause, prompting a meeting to discuss the situation and determine the next steps.
