mojocare: Financial irregularities found at healthcare startup Mojocare after review, say investors
Investors in Bengaluru- based healthcare and wellness startup Mojocare have found financial irregularities in the company, per a statement issued by them on Sunday.
A group of investors – including Peak XV Partners (erstwhile Sequoia India), Chiratae Ventures and B Capital – had initiated a review of the company. Sequoia’s seed-stage programme Surge had backed Mojocare.The forensic audit is still ongoing, the statement added. Chiratae Ventures is the largest shareholder in the company, while B Capital has pumped the most amount of capital yet.“A majority of Mojocare investors initiated a review of the company’s financial statements. While the analysis remains ongoing, initial findings have uncovered financial irregularities, and it has become apparent that the business model is not sustainable due to a variety of operational and market factors. As a result, Mojocare will be scaling down operations, and the investor group is working with the company through its transition,” the statement said.
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A group of investors – including Peak XV Partners (erstwhile Sequoia India), Chiratae Ventures and B Capital – had initiated a review of the company. Sequoia’s seed-stage programme Surge had backed Mojocare.The forensic audit is still ongoing, the statement added. Chiratae Ventures is the largest shareholder in the company, while B Capital has pumped the most amount of capital yet.“A majority of Mojocare investors initiated a review of the company’s financial statements. While the analysis remains ongoing, initial findings have uncovered financial irregularities, and it has become apparent that the business model is not sustainable due to a variety of operational and market factors. As a result, Mojocare will be scaling down operations, and the investor group is working with the company through its transition,” the statement said.
Also read | Exclusive: Sequoia’s Shailendra Singh on corporate governance, VC accountability, frothy tech valuations and more
On Saturday, Mojocare said it laid off 150 to 170 staffers across roles to improve its unit economics and better its capital efficiency.
Discover the stories of your interest
The healthcare startup had previously raised about $20 million led by B Capital Group, a venture capital firm set up by Facebook cofounder Eduardo Saverin in August 2022. Existing investors Chiratae Ventures, Surge and Better Capital had also participated in the round. Prior to that, it had raised a little over $3 million.
“Facing difficult market conditions, we at Mojocare have had to make tough decisions to improve our unit economics. Despite our best efforts, our business fundamentals have not worked out over the past few months,” a company spokesperson said in a statement.
The statement added that the startup will revert to operating as a small yet robust team to figure out what is the best way forward for profitability.
Mojocare runs a direct-to-consumer business to address issues like reproductive health and fertility, hair care, and weight loss through its online platform, which offers products, and consultations with doctors for customised treatment plans.
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Investors in Bengaluru- based healthcare and wellness startup Mojocare have found financial irregularities in the company, per a statement issued by them on Sunday.
A group of investors – including Peak XV Partners (erstwhile Sequoia India), Chiratae Ventures and B Capital – had initiated a review of the company. Sequoia’s seed-stage programme Surge had backed Mojocare.The forensic audit is still ongoing, the statement added. Chiratae Ventures is the largest shareholder in the company, while B Capital has pumped the most amount of capital yet.“A majority of Mojocare investors initiated a review of the company’s financial statements. While the analysis remains ongoing, initial findings have uncovered financial irregularities, and it has become apparent that the business model is not sustainable due to a variety of operational and market factors. As a result, Mojocare will be scaling down operations, and the investor group is working with the company through its transition,” the statement said.
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A group of investors – including Peak XV Partners (erstwhile Sequoia India), Chiratae Ventures and B Capital – had initiated a review of the company. Sequoia’s seed-stage programme Surge had backed Mojocare.The forensic audit is still ongoing, the statement added. Chiratae Ventures is the largest shareholder in the company, while B Capital has pumped the most amount of capital yet.“A majority of Mojocare investors initiated a review of the company’s financial statements. While the analysis remains ongoing, initial findings have uncovered financial irregularities, and it has become apparent that the business model is not sustainable due to a variety of operational and market factors. As a result, Mojocare will be scaling down operations, and the investor group is working with the company through its transition,” the statement said.
Also read | Exclusive: Sequoia’s Shailendra Singh on corporate governance, VC accountability, frothy tech valuations and more
On Saturday, Mojocare said it laid off 150 to 170 staffers across roles to improve its unit economics and better its capital efficiency.
Discover the stories of your interest
The healthcare startup had previously raised about $20 million led by B Capital Group, a venture capital firm set up by Facebook cofounder Eduardo Saverin in August 2022. Existing investors Chiratae Ventures, Surge and Better Capital had also participated in the round. Prior to that, it had raised a little over $3 million.
“Facing difficult market conditions, we at Mojocare have had to make tough decisions to improve our unit economics. Despite our best efforts, our business fundamentals have not worked out over the past few months,” a company spokesperson said in a statement.
The statement added that the startup will revert to operating as a small yet robust team to figure out what is the best way forward for profitability.
Mojocare runs a direct-to-consumer business to address issues like reproductive health and fertility, hair care, and weight loss through its online platform, which offers products, and consultations with doctors for customised treatment plans.
Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.
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