Financial irregularities found at healthcare startup Mojocare after review, say investors

The forensic audit is still ongoing, the statement said. Chiratae Ventures is the largest shareholder in the company, while B Capital has pumped the most amount of capital yet.

“A majority of Mojocare investors initiated a review of the company’s financial statements. While the analysis remains ongoing, initial findings have uncovered financial irregularities, and it has become apparent that the business model is not sustainable due to a variety of operational and market factors. As a result, Mojocare will be scaling down operations, and the investor group is working with the company through its transition,” the statement said.

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On Saturday, Mojocare said it laid off 150 to 170 staffers across roles to improve its unit economics and better its capital efficiency.

The healthcare startup had previously raised about $20 million led by B Capital Group, a venture capital firm set up by Facebook cofounder Eduardo Saverin in August 2022. Existing investors Chiratae Ventures, Surge and Better Capital had also participated in the round. Prior to that, it had raised a little over $3 million.

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“Facing difficult market conditions, we at Mojocare have had to make tough decisions to improve our unit economics. Despite our best efforts, our business fundamentals have not worked out over the past few months,” a company spokesperson said in a statement.The statement added that the startup will revert to operating as a small yet robust team to figure out what is the best way forward for profitability.

Mojocare runs a direct-to-consumer business to address issues like reproductive health and fertility, hair care, and weight loss through its online platform, which offers products, and consultations with doctors for customised treatment plans.