GoMechanic, the car-repair startup which was founded in 2016 has been backed up by Sequoia India.
The company’s co-founder feels that they have committed some grave errors in making judgments to grow the business.
As a part of restructuring the business and recovering from the mistakes they have committed in business operations, the management of GoMechanic has decided to cut off its workforce.
He said the leadership has decided to “restructure the business while we look for capital solutions”.
The co-founder of GoMechanic, Amit Bhasin reportedly said “the challenges of the sector took the better of us and we made grave errors in judgment as we followed growth at all costs, particularly in regard to financial reporting, which we deeply regret”.
“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 approx. 70 percent of the workforce. In addition, a third party firm will be conducting an audit of the business,”
He also added that the management has decided to restructure the business. And the organization’s working on a plan that would be good for growth, given the current circumstances.