'Compliance, ethics aren’t boxes to tick...': Aman Gupta shares blunt lessons for founders from BluSmart fallout

The fall of BluSmart has sent shockwaves through India’s startup ecosystem and for boAt’s Aman Gupta, it’s more than just a business collapse. It’s a wake-up call. Reflecting on the impact of the controversy, Gupta shared a deeply personal post, underscoring the damage and the lessons that must be learned. His message is clear: This isn’t just about one company’s missteps. It’s about the foundation of trust, ethics, and governance in the startup world.

Calling the incident “tough” and “sad,” Aman Gupta, Co-Founder and CMO of boAt, said the BluSmart situation is a “much-needed reality check” for the entire startup ecosystem.

In a post on X, he broke down the fallout:  
“I know what it feels like:  
- Investors lost money  
- Founders lost years of hard work  
- Employees lost stability  
- And customers lost a service they genuinely loved (Hope they get the money in Bluesmart wallet)”

But the damage, Gupta stressed, goes beyond financial loss. “This has also dented trust in the ecosystem. You’ll now hear: ‘Yaad hai BluSmart ke saath kya hua tha?!’”

He cautioned that reputational setbacks like this risk tainting the broader startup narrative. “That’s the damage we can’t afford,” he wrote. Yet, he urged founders not to lose faith: “Even global MNCs have had their meltdowns. What matters is how we as a country and ecosystem bounce back. The Indian startup ecosystem is resilient. We always rise stronger.”

Gupta, a Chartered Accountant by qualification, emphasised that ethics and governance aren’t optional. “Compliance and ethics aren’t boxes to tick. They’re the foundation,” he said. “Clean books, timely audits, transparent reporting… all the so-called ‘not so cool tasks’ make businesses sustainable.”

Referencing a childhood lesson, he added: “Jo bhi karo, dil se karo. Par galat na karo. Same rule applies in business too 😊”

He also called for better diligence across the board. “EQ, IQ & GQ (Governance Quotient) sab important hote hai. I hope more founders push for real due diligence—not just in finance, but in culture, operations, and responsibility,” he said.

Meanwhile, the BluSmart issue gained regulatory gravity after SEBI barred Gensol Engineering’s Anmol and Puneet Jaggi from holding key positions in listed firms. The watchdog’s interim order flagged discrepancies in Gensol’s disclosures about pre-orders for 30,000 EVs and a Pune-based manufacturing plant.

SEBI’s investigation began after a June 2024 complaint alleged share price manipulation and fund diversion.