GoMechanic exaggerated finances to attract Investors to get Growth At All Costs.
With revenue fraud & layoffs impacting 70 Percent of its workforce, Go-Mechanic is the latest Sequoia backed startup whose supposed main intention was to deflate the valuation to getting listed in a while on Indian exchanges.
A group of investors have called for a forensic investigation of its financials, & with the founders likely to be asked to step away, the company’s future is now uncertain.
Now founders admitted that they were misleading investors for years by showing fake numbers raising questions about the planned financial fraud. Now founders of startups are under financial surveillance and may lose valuation very badly with the brand reputation.