Indian Startup of an online vehicle repair platform, GoMechanic fires nearly 70% of the workforce due to Reported Incorrect Financial Data.
Amit Bhasin cofounder GoMechanic shared a LinkedIn post saying, “We founded GoMechanic In 2016 to bridge the gap between process-oriented authorized service centers and cost-effective local workshops for people who were looking for a better car repair experience. In a short span of time, we were able to create a startup that provided a ‘network of technology-enabled car service centers, offering its services at the convenience of just a tap.’”
“It was our conscious commitment to facilitate a convenient, affordable, and reliable experience that helped us win the trust and hearts of our customers. We were fortunate to get support from a large number of investors in this journey. We came a long way, from starting out with a few hundred customers to expanding our business exponentially to serving more than 7 Lac customers thus far”, Amit added.
“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, he added.
He further 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 approx. 70 percent of the workforce. In addition, a third-party firm will be conducting an audit of the business. While the situation is far from anything we could have ever imagined for Go Mechanic, we are working on a plan which would be most viable under the circumstances. Need the support of our well-wishers more than ever.”
Earlier, Indian Startup like Dunzo fired 3 percent workforce and ShareChat cut 20 percent of the total workforce. GoMechanic is a network of car repair centres offering servicing, repairs, and cleaning. The company was founded in 2016, the startup is led by Kushal Karwa, Bhasin, Rishabh Karwa, and Nitin Rana.
