Mass layoffs are being held by several companies from different industries in India as well as other countries. GoMechanic, a car repair startup, too joined the list of companies that are laying off their employees. It made an announcement that it will be laying off about 70% of its workforce as of now.
GoMechanic is a Gurgaon-based firm co-founded by Rishabh Karwa, Nitin Rana, Amit Bhasin, and Khushal Karwa in 2016. A startup that provides car servicing experience with as much ease as possible for the customers. Customers have access to a wide range of car services from periodic car servicing, car care services, wheel care services, cashless insurance claims, scheduled services, AC services, battery services, cleaning and detailing, denting and painting, and custom repairs according to the website of GoMechanic.
CEO of GoMechanic Amit Bhasin had recently confessed to financial reporting errors while adding that he will make sure that the company’s account is audited by a third party without any biases. He also said “as entrepreneurs, we identify problems, come up with solutions, and explore every opportunity to grow those solutions to meet unmet needs. But in this instance, we got carried away. 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.”
According to reports by ‘Tracxn’ the company has till now raised $6 million with its recent funding round being held in June 2021. GoMechanic is backed by Sequoia Capital, Chiratae Ventures, Tiger Global Management, and Brand Capital.
Amit Bhasin stated “that they take full responsibility for the current situation and have decided to restructure the business while they also look for capital solutions. This restructuring is going to be painful and we will unfortunately need to let go of approximately 70% of the workforce”.