Saarthi.ai, a deeptech startup, has reportedly struggled to pay long-overdue salaries to its employees over the past year with the workforce being reduced by more than 70 per cent. Sources indicate that the company slashed its team from 140 to just 40 employees since March 2023.
Most of these employees are still awaiting their pending salaries. Additionally, the firm has not remitted the tax deducted at source (TDS) to the government for the past two fiscal years.
A PTI report in July 2023 highlighted the layoffs and delayed salary payments at Saarthi.ai. While the report did not provide extensive details, it mentioned that Vishwa Nath Jha, CEO, Saarthi.ai, promised to clear the pending salaries within three months.
However, employees have expressed frustration, stating that salaries have been withheld for over a year and that the company has been unresponsive to legal notices. Reportedly, some employees claimed that the founder has repeatedly dismissed their concerns, stating he owes them no explanation.
In response to inquiries, the company confirmed the workforce reduction, attributing it to pressure from investors. Additionally, it claimed that the layoffs occurred before September of the previous year and dismissed the allegations of deliberately delaying salaries. The company further stated that it has not yet generated sufficient cash flow to settle long-standing dues but emphasised that it has been transparent with affected employees.
Founded in 2017 by Jha, Sameer Sinha and Sangram Sabat, Saarthi.ai focuses on conversational AI for low-resource and global languages, catering to Indic, South Asian, Arabic and European users.
