GoMechanic’s unravelling raises questions over investors’ due diligence


Aparajita Saxena

4 reads

Aparajita Saxena

4 reads

While the GoMechanic scandal has raised questions about the startup’s corporate governance, it has also triggered a debate in the ecosystem around investors’ role and responsibility in ensuring good corporate governance.

January 20, 2023


“This “move fast, break things” and “growth at all costs” mentality is a very VC-induced phenomenon. India used to be able to produce quality, solid companies like Haldirams, Dabur, and Godrej without raising outside capital and building slowly but steadily. Now, every six months, you hear of billion-dollar companies going bust, and it all ties into the fact that VCs want returns—by hook or by crook,” an investment banker at a large US financial services firm told The CapTable.

This is a sentiment that has been echoed by the rest of the business ecosystem over the last 24 hours. Where were GoMechanic’s investors as the company played fast and loose with its financials, and what were they doing all this while?

According to sources, the GoMechanic debacle came to light after Sequoia initiated a forensic audit of the firm’s books. Three sources YourStory spoke to added that GoMechanic had inflated its revenue figures and understated its expenses to elicit increased funding from investors such as Softbank and Tiger Global at a valuation in excess of $1 billion.

Read this article for free

Sign in using


Sign in using your email

Don't have an account?

Forgot Password?

By signing up for The CapTable you agree to the

Terms of Service


Privacy Policy

of the platform.

Smart Information, Better Decisions

We report on the latest and most important developments in India’s biggest tech companies and disruptive startups so you can make better decisions.

Inside View with Org Charts

Know the key decision-makers with Org Charts. We thrive on decoding boardroom conversations so we can bring you a 360° view of what's happening at India's high-growth companies.

Seasoned Team

Tracking the highs and lows of India’s biggest internet companies over the past decade has given us access to the right decision-makers to interpret the latest state of play.

Inside View

We thrive on inside scoops and decoding boardroom conversations so we can bring you a 360° view of what’s happening at India’s high-growth companies.

For subscribers only

Premium Reads


View More >>

Deeply reported and objective news on the country´s fastest-growing companies and the people behind them.