Mojocare to shut operations in Kolkata; some employees say they were forced to resign

Beleaguered Bengaluru-based start-up Mojocare is shutting down its Kolkata office, Business Today has learnt from sources. Around 40-45 employees have either been asked to resign or have been laid off. According to an employee BT spoke to, the company has asked even the senior managers of the Kolkata office to tender their resignation. 

“I was working from home because of personal reasons. They told me to resign in May saying they want people to come to office. Despite having a prior understanding with them, they suddenly made this request,” an employee told BT, requesting anonymity. People have been laid off from the sales and business operations verticals, according to the sources. 

BT could not independently verify if the layoffs in Kolkata were part of those announced earlier by the company.

Another employee BT spoke to said the company was investing a lot in the sales vertical. “They over-hired people in the sales department.” The second employee also said investors told the founders to “grow sustainably”, which sparked a series of layoffs.

“The investors told investors that the company cannot function like this and they need to grow sustainably. After that, things started going down the hill,” he said.

Mojocare declined to comment. This development comes days after the company said it had laid off about 80 per cent of its employees, or 150-170 people. 

The digital wellness platform has become the latest domestic start-up to suffer setbacks as governance lapses have forced the company to trim its workforce and scale down operations. In light of financial irregularities discovered during preliminary investigations, a consortium of investors, led by majority stakeholders Chiratae Ventures and B Capital, has launched a comprehensive review of the company’s financial statements. 

BT reported earlier that sources familiar with the matter said Mojocare’s downward trajectory began after the successful Series A funding round in August 2022, in which it raised $20.6 million.

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