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Corporate Governance Trouble at Reshamandi 🧵

ReshaMandi, a startup that raised over $40 Mn in equity funding, is facing insolvency pleas and has allegedly coerced employees to join another company, Genzr Solutions Private Limited, leaving hundreds of former employees awaiting salary dues. - ReshaMandi's downfall was attributed to rapid expansion across various verticals, revenue inflation, and financial mismanagement, including inflated revenue, fake vendors, and loan defaults. - ReshaMandi's founders and management personnel have joined Genzr, a seemingly unrelated company, raising questions about the acquisition and the funding received from an unrelated source. - The failure of ReshaMandi has raised concerns about VCs investing without adequate due diligence and the accountability of investors and founders for the company's financial situation and treatment of employees. Source: Inc42 - https://inc42.com/features/inside-the-upheaval-at-reshamandi-a-questionable-2nd-innings-after-a-40-mn-collapse/

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Qwerty2398

Stealth

3 months ago

the direct impact of such shady startups, is true talent will never join another startup. Only two kinds of people will join one - 1. people who dont have a choice, 2. people who have talent/ability to bargain and know how to move on to the next.
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Qwerty2398

Stealth

3 months ago

but i kind of feel happy when VC people get screwed. ...
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MightyLazyGeekStar

Stealth

3 months ago

Agri tech / social startups are grey areas. I am certain a lot of investors have probably lost money.
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RamsayBrothers

Unilever

3 months ago

Jail mein dalo salon ko
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News Discussion on

by NewsAnchor

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ReshaMandi Faces Complete Layoffs, Website Shutdown, and Auditor Red Flag

- ReshaMandi has laid off its entire workforce and its website has been down for a week, coinciding with the resignation of its auditor. - Sources indicate the company is struggling to pay liabilities and operational costs, including salaries, for several months. - The auditor, Walker Chandiok & Co LLP, highlighted issues like revenue inflation and fake invoices before resigning last month. - ReshaMandi owes Rs 14.16 lakh to the auditing firm and has appointed a new auditor, Suresh Kapoor & Associates, in late July. - Despite raising over $50 million, including a $30 million Series A round, the company is facing financial difficulties and is focusing on collecting pending receivables. Source: [Entrackr](https://entrackr.com/2024/08/exclusive-reshamandi-faces-complete-layoffs-website-shutdown-and-auditor-red-flag/)

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Indian Startups on

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Brace yourself everybody. Another big fraud coming and this will be bigger than what we have seen so far. Sequoia (Peak XV) portfolio company.

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