Financial malpractices in companies championing green and sustainable business practices raise concerns about environmental, social and government initiatives. There is growing scepticism among investors and consumers as governance lapses indicate mere greenwashing
Gensol Engineering and BluSmart Mobility are grappling with allegations and a Securities and Exchange Board of India (Sebi) investigation. Illustration: Chaitanya Surpur
Financial irregularities in Gensol Engineering and BluSmart Mobility—two companies previously celebrated for their commitment to green and sustainable business practices—raises questions about the true sustainability of green champions and brings under scrutiny the integrity of environmental, social and governance (ESG) initiatives. The two companies with common co-founders are grappling with allegations and a Securities and Exchange Board of India (Sebi) investigation.
BluSmart has raised around $278 million through 14 funding rounds from 259 investors as part of ESG, green or sustainable funds, shows a Forbes India analysis based on data provided by market intelligence firm Tracxn. Some of BluSmart’s marquee investors in ESG, green and sustainable space include Zurich-based impact asset management firm responsAbility Investments AG, Sumant Sinha (chairman and CEO, ReNew Energy) and BP Ventures (the corporate venture capital arm of British multinational oil and gas giant BP).
A little less than a year ago, in July 2024, BluSmart had raised $24 million (`200 crore) in a pre-Series B round to power its expansion plans. However, the company’s future appears bleak now as it has shut all its operations since April after Sebi’s interim order exposing the financial crisis in BluSmart.
Emails sent to both BluSmart and responsAbility Investments about the future of the company and related investments went unanswered at the time of going to press.