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/
the direct impact of such shady startups, is true talent will never join another startup. Only two kinds of people will join one -
but i kind of feel happy when VC people get screwed. ...
Agri tech / social startups are grey areas. I am certain a lot of investors have probably lost money.
Jail mein dalo salon ko
Just read this after getting to know earlier today that one of the cofounders have resigned. Didnt even know that the cofounders never had a stake, they’d just get a salary. Super weird.
Not the first nor the last. Haptik was probably one of the early ones that got arsenic poisoned post Jio acquisition...
