India’s startup IPO pipeline is projected to exceed the $ ext{₹}45,000 ext{ Cr}$ mark by 2026, fueled by investor preference for profitable tech ventures. However, this optimism is countered by the NCLT-admitted insolvency of electric mobility firm BluSmart Mobility. The parent entity and a key subsidiary face bankruptcy over defaulted debt. While the initial default was small, the total claims filed by over 200 creditors now surpass $ ext{₹}500 ext{ Cr}$. This action, including insolvency for major shareholder Gensol Engineering, underscores the critical need for strong financial governance among IPO aspirants.