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Sequoia India-backed GoMechanic fires 70% of the workforce amidst violation of accounting norms

Bloomberg reported that EY s research suggested that about 60 of the more than 1,000 GoMechanic service centres may have broken accounting rules to inflate revenue and divert funds

Sequoia India-backed GoMechanic Founder Admits Bad Accounting; Platform Sacks 70% Workforce

GoMechanic, an online vehicle repair platform, has laid off 70% of its workforce as the Sequoia India-backed startup grapples with a funding crunch after the existing and prospective investors found that the founders had misstated facts, says a report from TechCrunch.

Sequoia-backed GoMechanic s investors still unsure about extent of cooked books

Sequoia has a roughly 27% stake in GoMechanic, while Orios Venture Partners holds 17% and Tiger Global 10%.

Orios writes down GoMechanic investment

The Gurugram-based firm was looking to raise a new funding round led by SoftBank and Khazanah Nasional and was commanding a valuation of over $800 million.

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