New Delhi: Saarthi AI, Bengaluru-based startup Saarthi AI is facing one challenge after another. After conducting mass layoffs last year in an attempt to turn a profit the company has reportedly withheld salaries from several employees since March 2023. The CEO now alleges that a former employee who was part of the layoffs has stolen his passport adding yet another twist to the company’s ongoing troubles.
In July, Saarthi AI founder and CEO Vishwa Nath Jha shared with PTI that the company had to lay off employees in a bid to become profitable. He cited “investor pressure” as the driving force behind the tough decision.
Saarthi AI’s story has taken yet another twist, according to a recent report by Entrackr. CEO Vishwa Nath Jha revealed that a senior employee allegedly stole his passport which included a valuable US visa. After which Jha has been unable to travel abroad to secure new funding for the startup. Although he has since obtained a new passport, the lengthy wait for a new US visa continues to be a major setback.
Saarthi AI’s founder and CEO, Vishwa Nath Jha last year drew attention when the company had to let go of a large number of employees. Jha explained that the difficult decision was due to “investor pressure” and the need to keep the company financially afloat. However, these layoffs were just the start of Saarthi AI’s ongoing challenges.
However, the story doesn’t stop there. While Jha maintains that he has done nothing wrong and asserts that all employees have been paid, former and current staff tell a different tale. They claim that more than 50 employees have gone without their salaries for over a year with some even saying their legal notices have been ignored.
One frustrated ex-employee, speaking anonymously, shared, "The founder has been unresponsive and has repeatedly said he doesn’t owe us any explanation." Adding to the complaints, Jha acknowledged that Saarthi AI hasn't deposited TDS for its employees over the past two fiscal years.
Despite this he remains hopeful, stating that the company aims to be cash flow positive by Q2 of 2024. He also mentioned that the startup is actively looking for new funding to resolve its financial challenges. Jha added that Saarthi.ai is currently in discussions with investors to raise fresh capital and tackle its outstanding debts and liabilities.
