Mojocare, a Bengaluru-based start-up, is set to close its Kolkata office. As a result, approximately 40-45 employees have either been asked to resign or have been laid off.
According to an employee interviewed by Business Today (BT), the company has even demanded the resignation of senior managers from the Kolkata office.
“I was working from home because of personal reasons. They told me to resign in May saying they want people to come to office. Despite having a prior understanding with them, they suddenly made this request,” an employee told Business Today, requesting anonymity.
Sources indicate that individuals from the sales and business operations verticals have been subjected to layoffs.
According to another employee interviewed by BT, the company had made significant investments in the sales vertical, resulting in an excessive number of hires within the department. The second employee further revealed that the founders were advised by investors to pursue sustainable growth, leading to a chain of layoffs.
“The investors told investors that the company cannot function like this and they need to grow sustainably. After that, things started going down the hill,” he said.
Mojocare refrained from providing any comments regarding this matter. These recent events transpired shortly after the company announced the layoff of approximately 80% of its workforce, amounting to around 150-170 individuals.
As a result of governance lapses, the digital wellness platform has encountered challenges leading to workforce reduction and downsizing of operations, making it the latest domestic start-up to face setbacks. In response to initial investigations uncovering financial irregularities, a consortium of investors, primarily Chiratae Ventures and B Capital, who hold majority stakes, has initiated a thorough examination of the company's financial statements.
According to sources familiar with the matter, Mojocare's downward trajectory reportedly commenced following a successful Series A funding round in August 2022, during which the company secured $20.6 million, as reported by BT earlier.