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Hi readers,
The past few days have been marked by mass layoffs at several companies, including Amazon and ShareChat, in India.
GoMechanic, a lesser-known startup in the country, let go of nearly 70% of staff. The troubled car-servicing firm had a star-studded list of investors, including Sequoia Capital India and Tiger Global, which have now ordered a third-party audit of the company.
If things had gone well, GoMechanic would have added another top investor, SoftBank, to its cap table. However, the deal fell through as the startup reported “over-inflated numbers and fictitious garages.”
At US$35 million, this could have been one of SoftBank’s smallest bets in an Indian startup, which has a legacy of cutting checks of over US$100 million to several companies such as Flipkart, PolicyBazaar, and Paytm.
Clearly, the Japanese tech firm has been changing tack in India as the investment weather gets rough. While there’s been a lot of gloom around, with several startups bearing the slowdown brunt, here’s hoping global investors like SoftBank come around to assisting the investment flow in the country in a bigger way.
— Samreen Ahmad, journalist at Tech in Asia
Top stories this week
Image credit: Timmy Loen
1️. Plotting out SoftBank’s 2023 India roadmap
The world’s biggest tech investor is likely to sit tight and wait for valuation corrections in the second half of the year.
2. Vietnam’s Tiki reports widening FY 2022 loss as revenue drops
Will new initiatives like TikiAds and buy now, pay later help the company survive increased competition?
3. Tonik CEO on BNPL: ‘I prefer to call it sales finance’
Tonik Digital Bank may offer installment shopping loans too, but it’s doing it the good ol’ “bank way.”
4. The Peter Thiel-backed sleep startup on a quest to solve restless nights
Based in both the US and Vietnam, Earable Neuroscience says its AI-powered headband can improve users’ sleep, focus, and relaxation.
5. Malaysia is a better place than Singapore to found a startup, says this VC
Kevin Brockland explains why he is betting on local talent despite the challenges.
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