GoMechanic, an Indian automobile after-sales service startup, has laid off approximately 70% of its workforce amid severe financial difficulties. The Gurugram-based company, which provides car repair services and sells spare parts, is facing a critical cash crunch with reported loans of INR 120 crore and market pendency of INR 40 crore. Following the layoffs, which affected employees across departments including on-ground staff, the remaining employees have been asked to work without pay for the next three months. The situation has prompted lead investor Sequoia Capital to initiate a forensic audit due to financial irregularities. Founded in 2016 and backed by investors like Tiger Global, GoMechanic had raised $42 million in 2021 but now struggles with limited runway, reflecting broader challenges in the Indian startup ecosystem during a funding winter.
