Sequoia India-backed GoMechanic lays off 70% of workforce
India-backed GoMechanic lays off 70% of workforceHomegrown online vehicle repair platform GoMechanic, backed by Sequoia India, has laid off 70 per cent of its workforce as the startup struggles to raise funds amid serious concerns of accounting troubles, the media reported.
The company has asked the remaining staff to work without pay for three months, reports TechCrunch, citing sources.
For over a year, GoMechanic has been struggling to raise funds, despite advanced-stage discussions with several investors.
Moreover, the startup was in talks to raise a round of funding via Tiger Global (an American investment firm) at a valuation of over $1 billion early last year, according to the report.
However, the talks did not result in a deal after a discrepancy was discovered during the due diligence process, the report mentioned.
Later, the startup worked with a number of investors, including Malaysia’s Khazanah (a wealth fund firm), to raise a large round of funding.
GoMechanic was founded in 2016 by Amit Bhasin, Kushal Karwa, Nitin Rana, and Rishabh Karwa that connects car owners with repair service providers in their area, also it sells original spare parts and accessories for automobiles on its website.
Earlier this week, Homegrown social media company ShareChat (Mohalla Tech Pvt Ltd) laid off 20 per cent of its workforce due to uncertain market conditions.
Dunzo, a quick-grocery delivery provider, also laid off 3 per cent of its workforce amid cost-cutting measures.
–IANS
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