Mojocare, a troubled healthtech startup, has decided to shut down and return the remaining capital to investors. The board made this resolution after the founders admitted to inflating revenues and manipulating numbers.
Mojocare had raised USD 20.6 million in a funding round led by B Capital. However, an audit revealed the misreporting of revenue. The founders were asked to step down, and a new CFO took over.
The company’s financial situation led to discussions among investors about a possible fire sale or shutting down. The board has chosen to shut down and return the capital. This incident highlights the governance issues faced by Indian startups. Other startups, such as GoMechanic, Trell, Zilingo, BharatPe and 4B Networks, have also faced similar controversies involving mismanagement of funds.
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