GoMechanic founder admits to financial misreporting; firm lays off 70% of its staff

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GoMechanic
GoMechanic

Desi’s online auto repair platform GoMechanic has laid off 70 percent of its workforce. The Sequoia India-backed startup has stood struggling to raise funds amid serious concerns of office troubles. In a LinkedIn post, cofounder Amit Bhasin self-proclaimed grave faults in the company’s financial reporting. The company has likewise reportedly asked the remaining staff to work without wage for three months.

“Our passion to endure the intrinsic challenges of this sector, and manage capital, took the better of us and we complete errors in judgment as we followed growth at altogether costs, including regarding financial reportage, which we deeply regret,” Bhasin wrote in his post. “We take full duty for this current situation and unanimously have definite to restructure the business although we look for capital solutions,” he extra in the post.

Regarding the renewal plan, Bhasin wrote, “While the condition is far from anything we could have ever imagined for GoMechanic, we are working on a plan which would be most viable under the situations.” “We will be working together to regulate the company’s next steps, “is supplementary.

Last year, SoftBank drew out of investing in GoMechanic after due diligence by EY India highlighted dodges in the company’s accounts. Ever since then, the corporation has been struggling to raise funds, disdain advanced-stage discussions with several depositors.

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