Investors in the healthcare startup Mojocare have reported financial problems, according to a statement from the consortium, which also includes Sequoia Surge, B Capital, and Chiratae Ventures. This announcement follows the company's firing of 150–170 employees, or nearly 80% of its workforce. On Saturday, the layoffs were announced under the pretext of being a small corporation.
According to the statement, an examination of Mojocare's financial statements was started by the company's significant investors.
“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.
Entracker said that Mojocare had a valuation of between $70-75 million and had raised a total of $24 million.
The business talked about cost rationalisation and capital efficiency after the most recent layoffs. A firm representative had previously admitted to the media outlet that despite their best efforts, their fundamentals had not been successful in the previous 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 joins a long list of Indian start-ups that are being investigated for financial irregularities, including BharatPe, Zilingo, Trell, GoMechanic, and BYJU'S.
Mojocare is a direct-to-consumer portal that addresses health issues, provides products and doctor consultations. It was developed by Ashwin Swaminathan and Rajat Gupta.
