Saarthi AI, a Bengaluru-based startup, is currently embroiled in a series of dramatic events that have left the company in turmoil. The company, which aimed to become financially viable, has faced mass layoffs, allegations of unpaid salaries, and a bizarre claim from its CEO about a stolen passport. These events have not only affected the company’s operations but also its reputation in the tech industry.
Financial Struggles and Mass Layoffs
Saarthi AI’s financial troubles began when the company decided to lay off a significant portion of its workforce. According to CEO Vishwa Nath Jha, the layoffs were driven by investor pressure and the need to stabilize the company’s finances. However, this decision has led to ongoing issues, with several former employees accusing the company of withholding their salaries. Despite Jha’s denials, the allegations have persisted, painting a grim picture of the company’s financial health.
The layoffs have not only affected the employees but also the company’s ability to operate efficiently. With a reduced workforce, Saarthi AI has struggled to maintain its operations, leading to further complications. The company’s financial woes have also made it difficult to attract new investors, further exacerbating the situation.
Adding to the company’s troubles, Jha admitted that Saarthi AI has not deposited Tax Deducted at Source (TDS) for its employees over the past two fiscal years. This admission has raised questions about the company’s financial management and its ability to meet its obligations.
CEO’s Passport Theft and Its Implications
In a bizarre twist, CEO Vishwa Nath Jha claimed that a former employee, who was part of the layoffs, stole his passport, which included a crucial US visa. This theft has prevented Jha from traveling abroad to secure new funding for Saarthi AI, adding another layer of complexity to the company’s financial struggles. Although Jha managed to reissue a new passport, the wait for a new US visa has been agonizingly long, hindering his efforts to secure fresh capital.
The passport theft has not only affected Jha personally but also the company’s ability to attract new investors. With the CEO unable to travel, Saarthi AI’s quest for fresh funding has been significantly hampered. This incident has further strained the company’s already precarious financial situation, making it even more challenging to navigate through its troubles.
Despite these setbacks, Jha remains optimistic about the company’s future. He believes that Saarthi AI can become cash flow positive by the second quarter of 2024, provided they can secure the necessary funding. However, the road ahead remains uncertain, with many challenges still to be addressed.
Employee Grievances and Legal Issues
The mass layoffs and unpaid salaries have left many former employees disgruntled and seeking legal recourse. Over 50 employees have claimed that they have not received their salaries for over a year, despite Jha’s insistence that all employees have been paid. Some employees have even sent legal notices to the company, which have gone unanswered, further fueling their frustration.
The lack of communication from the company’s leadership has only added to the employees’ grievances. Many former employees feel that they have been left in the dark about the company’s financial situation and their own employment status. This lack of transparency has eroded trust in the company’s leadership and has made it difficult for Saarthi AI to retain its remaining employees.
In addition to the unpaid salaries, the company’s failure to deposit TDS has also raised legal concerns. Employees are worried about the potential legal implications of this oversight and how it might affect their own financial standing. The company’s legal troubles are likely to continue as more employees seek to hold Saarthi AI accountable for its actions.
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