Auto aftermarket company GoMechanic has laid off 70 percent of its workforce. And now the company’s co-founder, Amit Bhasin, has taken to professional networking site LinkedIn to clarify his position. Bhasin has admitted that the layoffs will be “painful”.
He also stated that their passion (that of the co-founders) to survive the challenges of this sector overcame them.
“As entrepreneurs, we identify problems, find solutions, and explore every opportunity to grow those solutions to meet unmet needs. But in this case, we let ourselves go. Our passion to survive the intrinsic challenges of this sector and manage capital got the better of us and we made serious errors in judgment while following growth at all costs, particularly in regards to financial reporting, which we deeply regret,” Bhasin wrote. on Linkedin.
Bhasin said they take full responsibility for the current situation and “unanimously decided to restructure the business while we look for capital solutions.”
He also urged people to support the startup at this time. “While the situation is far from anything we could have imagined for Go Mechanic, we are working on a plan that would be more viable under the circumstances. We need the support of our supporters more than ever.”
GoMechanic was started in 2014 by Kushal Karwa, Amit Bhasin, Rishabh Karwa, and Nitin Rana. The Gurugram-based company was launched with the intention of providing a seamless auto repair experience. The company, which serves around seven lakh clients, was in talks with Tiger Global to raise funds at a valuation of more than $1 billion, according to a TechCrunch report. Tiger Global has endorsed 38 unicorns in India including BharatPe, Ola Electric, BYJU’S, Frewshworks among others.