Deeptech startup, Saarthi.ai has been grappling with severe financial and operational challenges over the past year, significantly impacting its workforce and financial obligations. Vishwa Nath Jha, CEO, Saarthi.ai, has now assured that outstanding salaries would be settled within three months. However, scepticism remains among affected employees, especially given the company’s recent history.
The situation was first brought to broader attention in July 2023, when a report by PTI highlighted the layoffs and pending salary dues. The company has struggled to pay overdue salaries to both current and former employees, leading to a reduction in its workforce by more than 70 per cent. Reports further indicated that the staff count has dropped from 140 to just 40 since March 2023, with many employees still waiting for their pending salaries.
In addition to the salary delays, Saarthi.ai has not remitted tax deducted at source (TDS) to the government for the past two fiscal years, further complicating its financial standing. Despite these issues, the company has not been forthcoming with explanations, with several former employees alleging that their legal notices have gone unanswered.
Jha has denied accusations of intentionally delaying salaries, dismissing them as attempts to tarnish the company’s reputation. He has indicated that the company is currently in negotiations with banks and non-banking financial companies (NBFCs) to secure new deals and fill key positions, which he hopes will stabilise the situation.
Further complicating the company’s difficulties, Jha alleged that a former senior employee stole his passport, which included a US visa, hindering his ability to travel for crucial fundraising efforts. Although his passport has been reissued, he is still awaiting a new US visa, which he claims has delayed the company’s ability to generate surplus cash to clear its debts.
Despite these challenges, Jha remains optimistic, stating that Saarthi.ai aims to become cash flow positive by the second quarter of 2024. The company is also in discussions with investors to raise fresh capital to address its outstanding liabilities and debts.
