ReshaMandi, backed by Creation Investments, seems to be nearing the end of its journey. The company has reportedly laid off its entire workforce.
The company appears to have been facing financial difficulties for several months, and is now struggling to meet its liabilities and operational costs, including employee salaries. Furthermore, the company’s website has been down for over a week, coinciding with the resignation of its auditor, which has fuelled concerns about the company’s status.
The auditor’s resignation, filed with the Registrar of Companies (RoC), cited corporate governance issues such as revenue inflation and fraudulent invoices. It also mentioned that the company acknowledged its financial difficulties, including staff reductions and an inability to support the completion of financial statements for FY23.
ReshaMandi reportedly owes Rs 14.16 lakh to the auditing firm. Following the resignation, the company appointed a new auditor, Suresh Kapoor & Associates, in late July. The company has also seen the back-to-back resignations of its chief financial officers. Samadrita Chakravarty, former CFO, KPMG, who took over as group CFO in April 2023, after Ritesh Kumar, left the company in October 2023.
A spokesperson for ReshaMandi has acknowledged the company’s financial difficulties, stating that it has streamlined its staff, operations and processes to focus on collecting pending receivables from the market. The spokesperson expressed confidence in overcoming the challenges and getting the company back on track.
ReshaMandi is an agritech startup founded in 2020 by Mayank Tiwari, Saurabh Agarwal and Gautam Ahuja. The company’s main aim is to transform India’s silk industry by modernising its traditionally fragmented supply chain. The company offers an integrated digital platform that connects farmers, reelers, weavers and buyers, enhancing transparency, efficiency and traceability.
