Nearly two years after it raised a mammoth $42 Mn in funding, automobile after-sales service startup GoMechanic has reportedly laid off around 70% of its workforce.
Besides the retrenchments, former employees told The Morning Context that the startup has also directed the remaining employees to work without pay for the next three months. Inc42’s email query to GoMechanic elicited no response till the time of publishing this story. The article will be updated upon receiving a response from the startup.
Employees across departments including on-ground staff members were impacted by the layoffs. However, the startup also told the laid-off employees that they would be ‘called again if things get back to normal’. Meanwhile, GoMechanic’s biggest investor Sequoia Capital has also launched a forensic audit at the Gurugram-based startup. Citing financial irregularities, a source told the publication that GoMechanic has total loans of INR 120 Cr and a ‘market pendency’ of INR 40 Cr which is ‘pressuring’ the startup currently.
