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'Our passion took the better of us': GoMechanic co-founder expresses guilt after laying off 70% workforce

'Our passion took the better of us': GoMechanic co-founder expresses guilt after laying off 70% workforce

The company was in talks with Chinese investor Tiger Global to raise funds at a valuation of over $1 billion.

Bhasin said that they take full responsibility for the current situation and have “unanimously decided to restructure the business while we look for capital solutions.” Bhasin said that they take full responsibility for the current situation and have “unanimously decided to restructure the business while we look for capital solutions.”

Automobile after sales start-up GoMechanic has laid off 70 per cent of its workforce. And now, the company’s co-founder Amit Bhasin has taken to professional networking site, LinkedIn, to clarify his stance. Bhasin has admitted that the layoffs are going to be “painful.”


He also stated that their (the co-founders') passion to survive the challenges of this sector got the better of them. 
“As entrepreneurs, we identify problems, come up with solutions, and explore every opportunity to grow those solutions to meet unmet needs. But in this instance, we got carried away. Our passion to survive the intrinsic challenges of this sector, and manage capital, took the better of us and we made grave errors in judgment as we followed growth at all costs, particularly in regard to financial reporting, which we deeply regret,” Bhasin wrote on LinkedIn. 


 

Bhasin said that they take full responsibility for the current situation and have “unanimously decided to restructure the business while we look for capital solutions.”


He also urged people to support the start-up at this point in time. “While the situation is far from anything we could have ever imagined for Go Mechanic, we are working on a plan which would be most viable under the circumstances. Need the support of our well-wishers 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 to provide seamless car repair experience. Serving about seven lakh customers, the company was in talks with Tiger Global to raise funds at a valuation of over $1 billion, according to a report by TechCrunch. Tiger Global has backed 38 unicorns in India including the likes of BharatPe, Ola Electric, BYJU’S, Frewshworks, among others.
 

Published on: Jan 18, 2023, 12:49 PM IST
Posted by: Bhavya Kaushal, Jan 18, 2023, 12:45 PM IST