Intracity bus service startup ZipGo has suspended its services in various cities. According to media reports employees who used to work at ZipGo and were recently laid off from the company. The firm has fired over 60 employees who were looking after intra-city division.
According to Entrackr things for ZipGo had changed drastically post announcing Rs 300 crore proposed funding from Essel Group. Soon after the announcement, news about Essel Group and Videocon began to do rounds in media about the depositing of substantial cash during demonetization.
The revelation triggered a 26 percent fall in its share price in January. To pay Rs 17,174 crore debts, the company has been scouting for possible investors in Zee Entertainment for over several months. The crisis at Essel Group may have impacted its investment commitment in ZipGo.
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