Founders who walk away from funds - The Hindu BusinessLine thehindubusinessline.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thehindubusinessline.com Daily Mail and Mail on Sunday newspapers.
On July 5, ET had first reported that while a few investors considered the option of a fire sale, the majority were in favour of shutting down Mojocare and returning the remaining capital to the investors.
This weeks ETtech newsbreak on PharmEasy going for a rights issue at a price 90% lower than its peak valuation of $5.6 billion to repay debt has tripped alarm bells in several startups that have taken debt financing.
According to people briefed on the contents of the final forensic report, the founders have been found to have inflated revenues and sales in internal presentations to investors, and shown elevated expenses as well (to explain the losses in spite of the higher revenues).