GoMechanic admits to financial misreporting; lays off 70% of its staff
GoMechanic had reported overinflated numbers and fictitious garages.
GoMechanic co-founder Amit Bhasin has admitted to errors in financial reporting after irregularities were found in the company’s account books.
The car repair start-up was in talks to raise US$75-80 million in a funding round led by SoftBank, but the deal was called off due to financial irregularities.
According to media reports, GoMechanic had reported overinflated numbers and fictitious garages. It is also said that some of its favoured partner garages were found to be making disproportionately more money.
In an official statement, Bhasin confirmed that the company would get its accounts audited by a third party. Besides, it would also lay off around 70% of its workforce.
Official statement by Amit Bhasin, Co-founder, GoMechanic:
GoMechanic was founded in 2016. It operates a network of partner garages that offer car repair services. The platform is said to have over 900 garages in more than 40 cities.
Source: Read Full Article