Investors of Mojocare, a healthcare company, raise concerns over financial irregularities following significant employee layoffs. The consortium, consisting of Sequoia Surge, B Capital, and Chiratae Ventures, issued a statement highlighting the alleged misconduct.
The company terminated approximately 80% of its workforce, totalling around 150-170 individuals, using the justification of operating as a small firm. According to the statement, prominent investors of Mojocare have initiated a thorough examination of the company's financial statements.
“While the analysis remains ongoing, initial findings have uncovered financial irregularities, and it has become apparent that the business model is not sustainable due to a variety of operational and market factors. As a result, Mojocare will be scaling down operations and the investor group is working with the company through its transition,” the statement read, reported Business Today.
In response to the situation, a spokesperson from Mojocare expressed that they are actively collaborating with their investors to navigate the path ahead. They firmly denied all allegations of any funds being unlawfully withdrawn from the company. The spokesperson emphasised their joint efforts with the investors to determine the most beneficial course of action for the business.
As per Entracker's report, Mojocare, with a total funding of $24 million, had an estimated valuation ranging between $70-75 million.
Following the recent layoffs, the company addressed the importance of capital efficiency and cost rationalisation. Speaking to the media platform, a company spokesperson acknowledged that despite their diligent efforts, the company's underlying principles did not align as expected in the preceding months.
The spokesperson emphasised the decision to streamline costs in order to enhance capital efficiency. They further stated that by operating with a smaller yet resilient team, the company aims to prioritise profitability and sustainability while determining the optimal path for future success.
Mojocare, co-founded by Ashwin Swaminathan and Rajat Gupta, has joined the ranks of several Indian start-ups, including BharatPe, Zilingo, Trell, GoMechanic, and BYJU’S, that are currently under investigation for financial irregularities. The platform, which operates as a direct-to-customer service, focuses on providing solutions for health concerns along with doctor consultations and product offerings.