GoMechanic to let go 70% workforce, co-founder admits error in financial reports
GoMechanic's co-founder Amit Bhasin wrote, “We take full responsibility for this current situation and unanimously have decided to restructure the business while we look for capital solutions.”
GoMechanic - a chain of car repair centres backed by venture capital firm Sequoia India - will lay off 70 per cent of its workforce as it struggles to overcome 'errors in judgement', including inaccurate financial reporting as admitted by co-founder Amit Bhasin. "As entrepreneurs we identify problems, come up with solutions, and explore every opportunity to grow those solutions to meet unmet needs. But in this instance, we got carried away," Bhasin wrote said.
In a lengthy LinkedIn post Bhasin said: "Our passion to survive the intrinsic challenges of this sector, and manage capital, took the better of us... made errors in judgment as we followed growth at all costs, including in regard to financial reporting, which we deeply regret".
In an earlier version of the same post Bhasin had referred to 'grave' errors.
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"We take full responsibility for this current situation and unanimously have decided to restructure the business while we look for capital solutions," Bhasin wrote.
He said an external audit will be conducted in addition to the nearly 70 per cent lay-offs.
GoMechanic is a network of car repair centres offering servicing, repairs and cleaning. Founded in 2016, the startup is led by Kushal Karwa, Bhasin, Rishabh Karwa and Nitin Rana.