Saarthi AI, a Bengaluru-based startup, has been navigating through a series of tumultuous events following a wave of mass layoffs and financial difficulties. The latest twist in this ongoing saga comes from the company’s founder and CEO, Vishwa Nath Jha, who has claimed that his passport, containing a valuable US visa, was stolen by a former employee recently laid off.
According to a recent report by Entrackr, Jha’s assertion adds a dramatic new layer to the startup’s already troubled story. The theft of the passport has impeded Jha’s ability to travel abroad, stalling crucial efforts to secure fresh funding for Saarthi AI. Although he has obtained a new passport, the process of acquiring a new US visa is proving to be a lengthy and frustrating ordeal.
Saarthi AI’s troubles began last year when the company faced significant financial pressure, leading Jha to implement mass layoffs. These layoffs were described by Jha as a necessary measure to address “investor pressure” and ensure the company’s survival. However, the layoffs marked the beginning of a broader set of challenges for the company.
Former and current employees have raised concerns about unpaid salaries, with over 50 workers allegedly waiting for their due payments for more than a year. Reports indicate that some employees have issued legal notices that have gone unanswered. One anonymous ex-employee expressed frustration, claiming that Jha has been unresponsive and dismissive regarding these concerns.
Further complicating matters, Jha admitted that Saarthi AI has failed to deposit Tax Deducted at Source (TDS) for its employees over the past two fiscal years. Despite these issues, Jha remains hopeful, asserting that the company is working towards becoming cash flow positive by the second quarter of 2024 and is actively seeking new capital to alleviate its financial strain.
As Saarthi AI grapples with these challenges, including the CEO’s inability to travel and a discontented workforce, the future of the startup hangs in the balance. The outcome of this tech drama remains uncertain as the company strives to overcome its current hurdles.
