GoMechanic has laid off a sizeable variety of its workforce as the Sequoia India-backed startup struggles to raise resources amid critical worries of accounting difficulties, a resource familiar with the issue advised TechCrunch.
The Gurgaon-headquartered startup has slash 70% of the workforce and questioned the remaining employees to perform with out fork out for three months, Indian information outlet The Morning Context claimed Tuesday, citing unnamed sources.
GoMechanic did not reply to a request for remark.
The go comes as GoMechanic struggles to raise resources for about a yr despite advanced phases of conversations with quite a few traders. The startup was in talks early very last 12 months to elevate a round of funding led by Tiger International at in excess of $1 billion valuation, TechCrunch reported.
The talks did not materialize into a offer following some discrepancy was uncovered throughout the thanks diligence procedure, the resource explained. The startup later engaged with a number of investors which includes Malaysia’s Khazanah to elevate a huge round.
This round is also not likely to go by means of as really serious discrepancies have been observed in its textbooks, the source mentioned, requesting anonymity talking to the press. A current probe into the startup, which counts Tiger World-wide amongst its backers, uncovered that various of its garages were being fictitious amid other problems, the supply mentioned.