GoMechanic founder admits to financial lapses, 700 fired

GoMechanic, a car repair startup, has announced that they will be laying off around 70% of their workforce due to financial errors. The Sequoia-backed company admitted to grave errors in judgment and financial reporting, which led to the discontinuation of a funding round led by SoftBank and Khazanah Nasional.

Taking responsibility, Founder Amit Bhasin,
in a post on LinkedIn, said, ''We take full responsibility for this current situation and unanimously have decided to restructure the business while we 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."

Bhasin goes on to say "we made errors in judgment as we followed growth at all costs, including in regard to financial reporting, which we deeply regret."

The company has also decided to have their accounts audited by a third party.

Gurugram-headquartered GoMechanic, offers services such as repairing and carwashing. As per reports, the company was struggling to raise funds for over a year despite talks with several investors reaching advanced stages.