GoMechanic, an India-based vehicle servicing firm, is letting go of about 70% of its workforce as part of its restructuring efforts.
Photo credit: GoMechanic
Co-founder Amit Bhasin said in a LinkedIn post that the decision comes as the company looks for “capital solutions.” According to LinkedIn, GoMechanic has around 1,100 employees.
“Our passion to survive the intrinsic challenges of this sector, and manage capital, took the better of us and we made errors in judgment as we followed growth at all costs, including in regard to financial reporting, which we deeply regret,” Bhasin wrote in the post.
In addition to the job cuts, Bhasin said a third party will be looking into GoMechanic’s finances as part of an audit.
Founded in 2016, GoMechanic offers car services such as periodic checkups, air conditioning repairs, batteries, and online insurance claims. Bhasin said in the post that the company has served over 700,000 customers so far.
It was reported in September 2022 that SoftBank Vision Fund was eyeing a US$35 million injection into GoMechanic. The deal reportedly fell through after irregularities were found in the company’s financials and operations. Tech in Asia has reached out to SoftBank for comment.
GoMechanic last raised US$42 million in a series C round led by Tiger Global and joined by Sequoia Capital India, among others.
See also: Tracking layoffs across Asia’s startup ecosystem (Updated)
Editing by Samreen Ahmad and Lorenzo Kyle Subido
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