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Business Updates: ReshaMandi, a company led by Manish Sinha and backed by Creation Investments, has reportedly wound up and completely laid off its staff now, according to a source in Entrackr. This only served to add apprehensions regarding its well-being since the company’s site has remained static throughout this last week, while its auditor has also recently resigned.
“It’s all over for ReshaMandi, said one source in a report. According to it, the source added that “the company is facing difficulties in clearing liabilities and operational costs, including salary payments for the past several months.”.
Sources close to the company have confirmed that all 500 employees have been shown the door, the report said.
The company has been mired in several corporate governance issues, which include revenue inflation and fraudulent invoices. The issues were flagged in its regulatory filings with the Registrar of Companies by auditor Walker Chandiok & Co. LLP, which resigned last month. Its report, which resulted in the resignation, said that CTO and founder Saurabh Kumar Agarwal has finally admitted to financial problems besetting the company, including staff layoffs and the company not being able to assist the audit firm in finishing the work of its financial statements for FY23.
As per the regulatory filings, the company owes Rs 14.16 lakh to the auditing firm. ReshaMandi is based in Bengaluru and appointed Suresh Kapoor & Associates as its new auditor in late July.
Besides that, ReshaMandi has seen CFO exits in quick succession, much earlier in April 2023, when KPMG’s Samadrita Chakravarty was hired as group CFO to replace Ritesh Kumar, who in turn was in the job only from March 2022 to January 2023. Chakravarty too quit in October of the same year, Inc42 reported.
“Reshamandi is going through some financial turbulence and has rationalised its staff, operations, and processes to be focused on the collection of pending receivables from the market. We continue to believe in coming out of this situation strong and being able to get back on track soon,” a ReshaMandi spokesperson told the publication.
To date, ReshaMandi has raised more than $50 million, with leading rounds of $30 million in Series A in October 2021, $6.2 million in debt in November 2022, and others. ReshaMandi has received funding from investors such as Creation Investments, Omnivore, 9 Unicorns, Venture Catalysts, Northern Arc, and Innoven Capital.
