Reputation management lessons from Gensol–BluSmart crisis

When corporate storms hit, they rarely offer the courtesy of a warning. The Gensol–BluSmart saga is one such tempest, unravelling in real-time across headlines, investor statements, customer complaints, and now, regulatory proceedings. It’s a cautionary tale not only about financial missteps but also about how fragile trust has become in the modern business ecosystem and how essential proactive communication is in safeguarding it.

As someone who has spent nearly three decades helping brands navigate volatility, this crisis feels different—it’s not just a corporate issue, it is a credibility collapse. The consequences are systemic—SEBI investigations, an exodus of leadership, stranded customers, agitated employees, and a business model that once stood for sustainability is now burdened with doubt.

Let’s examine the core missteps and more importantly, the communications blueprint companies must adopt to avoid a similar fate.

Silence leading to panic

Perhaps the most damaging aspect of this crisis was not what was said but what wasn’t. BluSmart’s abrupt suspension of services in key cities left customers puzzled. Prepaid wallet users had no communication, refund timelines, or working helpline. In the absence of answers, speculation took over. The silence amplified the panic, and social media did the talking.

Ideally, the company should have issued a holding statement within 24 hours. A clear in-app message acknowledging disruptions followed by daily updates on refunds and operations. In a hyper-connected age, silence is not a strategy; it is negligence.

Ignoring the real costs

Startups often celebrate hustle, but rarely speak about responsibility when things go south. BluSmart’s driver partners, unlike Ola and Uber, were on the company’s rolls. They, reportedly, lost their income overnight. Gensol’s employees allege forced resignations. Customers too were left chasing their own money.

Crisis communications must start with empathy. A dedicated refund task force, and open town halls with employees and independent auditors to validate customer claims would have helped address the situation better. Most importantly, it is necessary to make a clear distinction between a short-term shutdown and a company-wide collapse—something BluSmart failed to articulate.

A trust issue

Another but the most troubling revelation was the blurred line between Gensol and BluSmart. With the same founders being at the helm of both the organisations and SEBI alleging diversion of Gensol funds to BluSmart, credibility took a massive hit. Allegations of luxury purchases using company funds further affected public perception.

What the situation demanded was a leadership reset. Bring in interim professionals. Signal independence. Reframe the narrative, not as collapse, but as evolution. Had BluSmart communicated its pivot to an asset-light, partner-first model, such as exploring fleet partnerships with Uber, it could have controlled the storyline.

Compliance is not optional

Organisations must know that regulatory transparency cannot be optional. Rating downgrades, INR 260 crores in questionable EV loans, delayed disclosures—the issues were too many and too serious to ignore. The financial red flags were piling up long before SEBI was involved. Gensol’s sluggish response only worsened the consumer perception.

What could have changed the course? Hosting quarterly investor communications, making prompt audited disclosures, and issuing a clarification on inter-company relationships and debt obligations would have been the ideal course of action. The absence of this transparency didn’t just trigger a regulatory probe but it also damaged the brand’s relationship with institutional investors.

Rebuilding brand trust

Both companies now face an uphill climb in rebuilding public trust. BluSmart, once celebrated as India’s green mobility darling, is being spoken of in the past tense. Gensol, a respected name in solar EPC, is now known for governance lapses more than its projects.

So, what remedial actions can be taken now? Both companies must start with internal structural reforms by appointing an independent board first. They need to anchor governance in ESG principles and launch stakeholder campaigns to explain recovery steps. Even better, they should build advisory councils that include users, employees, and experts to co-create solutions.

For BluSmart, consider a bold rebranding with purpose, a carbon offset initiative tied to each ride, signalling its renewed sustainability commitment. For Gensol, double down on its core solar and EPC strengths, clearly communicating its exit (or distancing) from EV experiments.

The cost of delay

There is a quote I often share in boardrooms: “When you don’t fill the communication gap, someone else will; they won’t be kind.” In this case, the vacuum allowed narratives of fraud, mismanagement and collapse to take hold. By the time clarifications arrived, reputational damage had already set in.

Gensol–BluSmart crisis makes it clear that in the age of real-time scrutiny, trust is not built by clever marketing. It is earned through transparency, accountability and speed.

This is not a moment for corporate India to look away. Whether you are running a legacy conglomerate or a VC-backed disruptor, the lessons are the same: Speak early; own your story. Put people first; build in public.

When a crisis hits, the only true currency you will be left with is trust and the will to rebuild it—brick by brick.

— Vikram Kharvi, CEO, Bloomingdale PR