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After GoMechanic, Zilingo, and others it’s the turn of Healthtech startup Mojocare which has financial irregularities, said its investors. The case yet again brings the corporate governance issue to the fore among Indian startups.
Investors in the Bengaluru-based firm in a statement said that they have found financial irregularities and also said that the business model is not sustainable.
“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,” said the joint statement from the investors of the company.
They further added, “As a result, Mojocare will be scaling down operations, and the investor group is working with the company through its transition.”
Mojocare’s major investors include Chiratae Ventures, Peak XV Partners, B Capital, Better Capital, Surge among others.
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According to media reports, Deloitte has been carrying out the forensic audit at the company for some time now.
The company had raised $20.6 million in Series A round in 2022. And its current valuation, according to Tracxn, is $67 million. The company had reported revenue of Rs 12.1 crore in FY22 up from Rs 30 lakh in FY21 and losses in FY22 went up to 7.3 crore, said Tracxn data.
A week back Mojocare had also laid off 80 per cent of its staff. In media reports the company had said that 150-170 employees were impacted as it looked to rationalise cost and focus on profitability.
In recent times, Indian startups have reported financial lapses and have been pulled up by investors. Some of the recent examples include BharatPe, GoMechanic, and Zilingo.
A few weeks back Rahul Yadav’s Broker Network also had run ins with its investors. Info Edge in a regulatory filing said that it has initiated forensic audits into the affairs of the company and has appointed Deloitte Touche Tohmatsu India.
