Wednesday, April 17, 2024
Outlook India
Outlook Business

Mojocare Lays Off 80% Of Its Workforce, Investors Call For Forensic Audit

The healthtech reportedly laid off around 160 employees

Mojocare Lays Off 80% Of Its Workforce, Investors Call For Forensic Audit
POSTED ON June 19, 2023 12:18 PM

The layoff saga in the Indian tech space continues to haunt employees. The latest to join this sordid scenario is Bengaluru-based health tech Mojocare, which has reportedly laid off 80 per cent of its workforce, amounting to around 160 employees.

“Despite our best efforts, our business fundamentals have not worked out over the past few months. In order to become more capital efficient, we have decided to rationalize costs. In order to prioritize profitability and sustainability, we must revert to operating as a small yet robust team, allowing us to figure out what’s best for the company going forward,” Mojocare's spokesperson said, while answering Entrackr’s queries. 

In August 2022, the digital wellness platform had raised $20.6 million in Series A round led by B Capital and existing investors like Chiratae Ventures, Sequoia India’s (Peak XV Partners) Surge and Better Capital.

Now several of its these investors, including Chiratae Ventures, B Capital and Peak XV Partners, are seeking a joint forensic audit of its financial statements. These investors claimed in a statement that the audit report revealed several irregularities and as a result, MojoCare will scale down its operations. 

“A majority of Mojocare investors initiated a review 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 said. 

  • Related Articles

    IndiQube recently made its foray into tier 2 and tier 3 cities

    IndiQube Plans To Raise $75 Million: Report

    The program invites applications from across segments such as fintech, SaaS, IT/enterprise, edtech, consumer and healthcare

    IIMB’s NSRCEL To Conduct 4th Cohort Of Velocity Program In July 2023

    It will serve as a Centre of Excellence developing technology solutions in key areas like product master data management and traceability services

    GS1 India Opens A Software Development Lab In Chennai To Develop Blockchain-Based Solutions