BlogTerminal
The recent suspension of BluSmart's operations and SEBI's allegations against its affiliate, Gensol Engineering Ltd, for fund diversion and document falsification, has stirred intense debate in the startup ecosystem.
Hotmail co-founder Sabeer Bhatia warned against media trials, stating that such sensationalism can damage the broader startup culture. He stressed the importance of due process and responsible reporting to preserve innovation and risk-taking.
Aman Gupta, Shark Tank India investor, called it a “reality check” for startups. He empathized with stakeholders—investors, founders, employees, and customers—highlighting how the incident eroded trust in the ecosystem. Still, he expressed hope, stating that India’s startup sector remains resilient and will bounce back.
Adding a witty angle, Bewakoof CEO Prabhkiran Singh linked the controversy to India's economic growth, noting that misused funds now fuel luxury investments within India, unlike earlier patterns of offshoring wealth.
The episode has become a moment of reflection, urging the community to address accountability while protecting the spirit of innovation.
