Investors have reportedly uncovered financial irregularities at health and wellness startup Mojocare. Investors claim that the firm inflated revenue figures and dealt with vendors related to founders. Mojocare has denied all accusations. Investors also discovered that the firm's business model was "not sustainable due to a variety of operational and market factors." - The news of financial discrepancies comes a day after Mojocare laid off the majority of its workforce, culling 150 to 170 roles.
- The Indian startup has raised $23M from investors, the last of which came in the form of a $21M Series A funding led by Eduardo Saverin's VC firm B Capital in August 2022.
- Mojocare is also backed by Chiratae Ventures and Peak XV Partners (formerly known as Sequoia India and Southeast Asia).
Mojocare joins the growing list of Sequoia-backed startups facing misconduct allegations, including GoMechanic, Zilingo, BharatPe, and Trell. - Upon discovering the previous irregularities, Sequoia said it would take proactive steps to increase governance in portfolio startups, such as training sessions, whistleblower policies, and internal audits.
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