![]() ![]() Moneycontrol reported that investors had stepped in to scrutinise the company’s operations. The funding did not happen and the company has since laid off more than 70 percent of its staff.Īgri-tech startup DeHaat saw its auditor giving it a qualified opinion for three consecutive years. When Softbank carried out due diligence of GoMechanic in the runup to a funding infusion, it found several service centres were inflating revenues and diverting investor funds. If the funding boom of 2021 had sustained, ZestMoney could have roped in external investors rather than take the merger and acquisition route, and the issues may well have gone unnoticed. ![]() ![]() This led PhonePe to abort the planned buyout after a long due diligence process of 3-5 months. In every instance, the issues came to the surface only after close scrutiny of these companies’ books and operations.Ī thorough investigation by PhonePe, which was looking to acquire the fintech ZestMoney, found the latter’s nonperforming assets to be higher than stated, and revealed holes in its collection process. A number of startups have faced governance issues over the last 18 months, including BharatPe, Zillingo, DeHaat, Pristyn Care, GoMechanic and Mojocare. While edtech major Byju’s has been making headlines of late for all the wrong reasons, especially on the corporate governance front, it is not alone. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |