Corporate governance mishap in a startup: A case of GoMechanic

Sanjay Dhamija, Reena Nayyar

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Case Studies
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The case study revolves around the confession of financial irregularities made by one of the cofounders of GoMechanic, a start-up headquartered in Gurugram, India. On January 18, 2023, Amit Bhasin confessed to financial irregularities in the company’s financial statements, leading to laying off 70% of the workforce of the company. GoMechanic had earlier raised close to US$62m [1] from maverick global investors including Sequoia Capital, Tiger Global, Orios Venture Partners and Chiratae Ventures, and was negotiating to raise Series D financing from the Japanese multinational SoftBank with aspirations to be a unicorn (start-up with a valuation of over $1bn). The confession led to a debate about the consequences of the “growth at all cost” culture being followed by start-ups as well as VCs. GoMechanic was not an isolated instance of a lack of governance in the start-ups. The confession had consequences not only for the GoMechanic but for the entire start-up ecosystem of India, which was the third largest in the world. Bhasin stated that the founders take full responsibility for the situation, and they were working on a plan which was most viable under the circumstances. However, it was not going to be easy to regain the confidence of the investors.

Subjek

BUSINESS MANAGEMENT
 

Katalog

Corporate governance mishap in a startup: A case of GoMechanic
ISSN: 2045-0621
11p.: pdf file.; 109 KB
English

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Sanjay Dhamija, Reena Nayyar
Perorangan
 
 

Penerbit

Emerald Publishing Limited
New York
2024

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