Sequoia-backed GoMechanic cuts 70% jobs amid ‘grave errors’ in financial reporting – By Manish Sing (Techcrunch) / Jan 18, 2023
GoMechanic has laid off 70% of its workforce as the Sequoia India-backed startup grapples with a funding crunch after the existing and prospective investors found that the founders had misstated facts.
The move comes as the Gurgaon-headquartered GoMechanic, which offers auto-services such as repairing and carwashing, has been struggling to raise funds for over a year despite reaching advanced stages of deliberations with several investors.
GoMechanic was in talks early last year to raise a round of funding led by Tiger Global at over $1 billion valuation, TechCrunch reported earlier. The talks did not materialize into a deal after some discrepancy was found during the due diligence process, a source said.
GoMechanic later engaged with a number of other investors, including Malaysia’s Khazanah to raise a large round. Khazanah was positioning to lead the round whereas SoftBank was also looking to participate.
CONTINUE > https://techcrunch.com/2023/01/18/sequoia-india-backed-gomechanic-faces-severe-trouble/
