Investors of GoMechanic, India’s largest aftermarket automotive service and maintenance platform, have flagged accounting irregularities at the company, which has now decided to lay off 70 per cent of its workforce as it struggles to raise fresh funds. It is the third Sequoia-backed start-up in over a year, after Singapore-based Zilingo and fintech unicorn BharatPe, to report financial irregularities.
According to people in the know, investors may now ask GoMechanic founders to take leave of absence.
“We are deeply distressed by the fact that the founders knowingly mis-stated facts, including but not limited to the inflation of revenue, which the founders have acknowledged,” said GoMechanic’s investors in a joint statement.
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