Mojocare, a health-tech startup, co-founded by Ashwin Swaminathan and Rajat Gupta in 2021 has reportedly laid off 150-170 employees. That means, the direct-to-customer or D2C service platform, which offers doctor consultations, solutions for health issues and health products, has let go about 80 per cent of its workforce.
These layoffs have come to light amid allegations of financial irregularities within the company. Now concerns are being raised regarding their financial practices and overall management. Worried investors such as Sequoia Surge, B Capital, and Chiratae Ventures, who have put their trust and funds into Mojocare, have initiated steps to re-examine the company’s financial records.
Operating as a direct-to-customer service in the healthcare sector, Mojocare offers a range of treatments from reproductive health and fertility treatments to weight loss and hair loss solutions, coupled with doctor consultations and product recommendations.
According to Business Today report, initial investigations have uncovered financial inconsistencies and revealed that Mojocare’s business model is far from sustainable due to various operational and market factors. As a result, the startup company will be reducing its operations in a bid to function as a small business.
While the allegations of financial irregularities are being denied by the platform, it is cooperating with investors and investigators to resolve the situation. The firm also denies misuse of funds.
The health-tech startup stated that they decided to lay off employees to enhance capital efficiency and improve the economics of their business at the unit level.
However, Mojocare’s recent layoffs and the subsequent investor concerns have made it a part of the growing list of Indian startups under scrutiny for financial inconsistencies. Currently, companies such as BharatPe, GoMechanic, Zilingo, Trell and BYJU’S are also facing similar inquiries.