Gurgaon, 18th January 2023: In response to claims of overstated income, GoMechanic co-founder Amit Bhasin declared that the company would fire roughly 70% of its staff. He acknowledged that the Sequoia-backed firm for auto maintenance had made mistakes in its financial reporting and added that the cash-strapped business will also have its books audited by a third party.
One of the Co-Founders Amit Bhasin admitted in a LinkedIn post that the four founders got carried away in their quest for exploring opportunities to grow.
The LinkedIn post by Bhasin read, “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.”
It further 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.”
He further wrote, “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.”