Saarthi.ai, a deeptech startup specializing in conversational AI, is currently mired in significant operational and financial issues. The company has experienced severe disruptions over the past year, marked by mass layoffs, unpaid salaries, and allegations of mismanagement.
Since March 2023, Saarthi.ai has reduced its workforce by over 70%, from 140 employees to just 40. Many of the affected employees are still awaiting payment for long-overdue salaries. Additionally, the company has failed to remit the tax deducted at source (TDS) for the last two fiscal years.
In July 2023, reports surfaced about the company’s layoffs and unpaid dues, although details were sparse. CEO Vishwa Nath Jha had previously assured that pending salaries would be cleared within three months. However, former employees claim that their salaries have been withheld for over a year, and the company has not responded to legal notices.
Jha acknowledged the workforce reduction, attributing it to investor pressure, and admitted that TDS payments have not been made. He cited ongoing cash flow challenges and explained that Saarthi.ai is working towards becoming operationally cash flow positive by Q2 2024. The company is also seeking new capital to address its debts and liabilities.
Founded in 2017 by Jha, Sameer Sinhaa, and Sangram Sabat, Saarthi.ai focuses on AI for low-resource and global languages. Despite the financial turmoil, the Bangalore-based startup is still operational and servicing paying clients. Jha noted that the company is also recruiting new staff, which has raised concerns among former employees.
Amid these challenges, Jha claimed that a former senior employee stole his passport and US visa in an attempt to hinder his efforts to secure fresh capital. Although he has managed to obtain a new passport, he is still awaiting a new US visa.
Jha refuted claims of deliberate salary delays, calling them a smear campaign and asserting that the company is negotiating with banks and non-banking financial companies (NBFCs) to stabilize its operations and fill key positions.
Source:- Entrackr
