ReshaMandi Layoffs: Bengaluru-Based Startup Lays Off Its Entire Employees, Shuts Down Website Amid Financial Problems
Bengaluru-based startup ReshaMandi has reportedly laid off its entire employees and shut down its website amid financial struggles, corporate governance issues and the resignation of its auditor, Walker Chandiok & Co LLP.
New Delhi, August 21: Bengaluru-based startup ReshaMandi reportedly laid off its entire employees and shut down its website amid financial struggles. As per reports, the Creation Investments-backed firm has been facing financial difficulties, leading to its difficulty to pay liabilities and operational costs, including salaries. The company has been reportedly dealing with corporate governance issues, revenue inflation and fake invoices. The resignation of its auditor, Walker Chandiok & Co LLP, further highlights the significance of the situation.
As per a report of Entrackr, ReshaMandi faces complete layoffs and a website shutdown. The auditor's resignation is reportedly due to the company's inability to support the audit firm's efforts to complete the financial statements for FY23. The auditor of the company, Walker Chandiok & Co LLP, reportedly pointed out some concerning problems and resigned last month. As per reports, the information was found in a regulatory filing from the Registrar of Companies (RoC). GoPro Layoffs: Action Camera Maker To Lay Off 15% of Its Employees To Reduce Operating Expenses Amid Restructuring Efforts; Check Details.
The firm reportedly owes INR 14.16 lakh to the auditing firm for services provided. Additionally, ReshaMandi has seen the resignations of its chief financial officers. The company's new auditor, Suresh Kapoor & Associates, was appointed in late July, but the future remains uncertain. According to a report of Business Outreach, Saurabh Kumar Agarwal, the Chief Technology Officer and founder of ReshaMandi, acknowledged that the company is facing financial difficulties.
In April 2023, Samadrita Chakravarty, who used to work as a CFO at KPMG, became the group CFO, replacing Ritesh Kumar, who was the CFO from March 2022 to January 2023. However, Chakravarty also left the company in October of the previous year. ReshaMandi's website has been reportedly down for the past week, coinciding with the complete layoffs of its employees. General Motors Layoffs: US Automobile Manufacturing Company GM Lays Off Around 1,000 Employees To Reduce Costs Amid Industry Downturn.
The company's co-founder, Mayank Tiwari, has not commented about the job cuts. A spokesperson for ReshaMandi reportedly highlights that the company has made changes to its staff and operations. Despite the challenges, the spokesperson expressed hope that the company could overcome the situation and get back on track.
(The above story first appeared on LatestLY on Aug 21, 2024 08:42 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).