Sequoia India-backed GoMechanic, the aftermarket automotive service and maintenance platform, has decided to lay off 70% of its staff, Co-founder Amit Bhasin said on Wednesday.
Bhasin made the announcement through a post on LinkedIn, in which he took the blame for the way in which the situation has unfolded.
"Our passion to survive the intrinsic challenges of this sector, and manage capital, took the better of us and we made errors in judgment as we followed growth at all costs, including in regard to financial reporting, which we deeply regret," Bhasin wrote.
"We take full responsibility for this current situation and unanimously have decided to restructure the business while we look for capital solutions. This restructuring is going to be painful and we will, unfortunately, need to let go of approximately 70% of the workforce. In addition, a third-party firm will be conducting an audit of the business.”
“While the situation is far from anything we could have ever imagined for GoMechanic, we are working on a plan which would be most viable under the circumstances," the post further read.
Bhasin also stated that GoMechanic was founded in 2016 to bridge the gap between process-oriented authorised service centers and cost-effective local workshops for people who were looking for a better car repair experience.
"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," he wrote.
“In a short span of time, the team was able to create a start-up that provided a 'network of technology-enabled car service centres, offering its services at the convenience of just a tap,” Bhasin stated in the post.
"It was our conscious commitment to facilitate a convenient, affordable, and reliable experience that helped us win the trust and hearts of our customers. We were fortunate to get support from a large number of investors in this journey. We came a long way, from starting out with a few hundred customers to expanding our business exponentially to serving more than seven lakh customers thus far," he added.
Bhasin also sought the support of the company's well-wishers.