As part of its reorganisation efforts, GoMechanic, an Indian auto service company, is laying off nearly 70% of its workers.
The decision was made, according to co-founder Amit Bhasin, while the business searches for “funding solutions.” About 1,100 people work at GoMechanic, according to LinkedIn.
“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.
Bhasin also mentioned an audit by a third party that will examine GoMechanic’s finances in addition to the job layoffs.
GoMechanic, a company that was established in 2016, provides auto services like routine maintenance, air conditioning repairs, batteries, and online insurance claims. The firm has currently served more than 700,000 consumers, according to Bhasin’s tweet.
GoMechanic was reportedly in line for a US $35 million investment from SoftBank Vision Fund in September 2022. Reported flaws in the company’s finances and operations led to the collapse of the acquisition. SoftBank has been contacted by Tech in Asia for comment.
In a series C investment that was co-led by Tiger Global and included Sequoia Capital India, among others, GoMechanic most recently raised US $42 million.
