Healthcare company Mojocare’s investors have flagged financial irregularities, as per a statement issued by the consortium, including Sequoia Surge, B Capital and Chiratae Ventures. This statement comes after the company fired about 80 per cent of its employees, comprising around 150-170 people. The layoffs were announced on Saturday under the pretext of operating as a small firm.
The statement said that major investors of Mojocare 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 added.
A Mojocare spokesperson said that they are working closely with their investors to find a way forward. “We categorically deny all accusations of money being taken out of the company. Together with our investors we are actively figuring out what’s best for the business,” the spokesperson said.
According to a report in Entracker, Mojocare was valued at around $70-75 million and has raised $24 million in total.
The company, after the recent layoffs, had spoken about capital efficiency and rationalising costs. A company spokesperson had told the media platform that despite their best efforts, their fundamentals did not work 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,” the spokesperson said.
Mojocare is joining a long list of Indian start-ups including BharatPe, Zilingo, Trell, GoMechanic, BYJU’S, that are under scrutiny for financial irregularities.
Mojocare, founded by Ashwin Swaminathan and Rajat Gupta, is a direct-to-customer platform that addresses health issues, as well as offers products and consultations with doctors.
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