GoMechanic has laid off an important choice of its team of workers because the Sequoia India-backed startup struggles to lift price range amid severe issues of accounting troubles, a supply accustomed to the subject informed TechCrunch.
The Gurgaon-headquartered startup has lower 70% of the team of workers and requested the remainder team of workers to paintings with out pay for 3 months, Indian information outlet The Morning Context reported Tuesday, bringing up unnamed assets.
GoMechanic didn’t reply to a request for remark.
The transfer comes as GoMechanic struggles to lift price range for over a 12 months in spite of complex phases of discussions with a number of traders. The startup used to be in talks early remaining 12 months to lift a spherical of investment led via Tiger International at over $1 billion valuation, TechCrunch reported.
The talks didn’t materialize right into a deal after some discrepancy used to be discovered all over the due diligence procedure, the supply stated. The startup later engaged with quite a lot of traders together with Malaysia’s Khazanah to lift a big spherical.
This spherical could also be not likely to move via as severe discrepancies were present in its books, the supply stated, inquiring for anonymity talking to the clicking. A up to date probe into the startup, which counts Tiger International amongst its backers, discovered that a number of of its garages had been fictitious amongst different problems, the supply stated.