Bengaluru-based startup Saarthi AI’s troubles seem to have no end in sight. The company conducted mass layoffs last year in a bid to become profitable, and has allegedly withheld the salaries of several employees since March 2023.
Now, the CEO of Saarthi AI claims a former employee stole his passport which had a US visa.
Saarthi AI founder and CEO Vishwa Nath Jha told news agency PTI in July that the company had been forced to let go of some employees to become profitable. He blamed “investor pressure” for the layoffs.
A report published in Entrackr today adds a fresh twist to the story. Speaking to the tech news website, Jha claimed that a senior employee stole his passport, and that is preventing him from travelling abroad to raise fresh capital for the troubled firm.
“While I managed to reissue a new passport, I am yet to get the US visa again. It’s a long queue,” Jha said.
Discontent over unpaid salaries
He rubbished allegations of employees’ salaries being withheld. Jha said that no salaries have been withheld and the allegations are a ploy to defame the AI startup. “We’re planning to fill key positions as it negotiates deals [business] with several banks and NBFCs,” he said.
Current and former employees of the company, however, have a different story to tell. The mass layoffs carried out in September last year reduced Saarthi AI’s workforce to 40 employees. Entrackr talked to about a dozen employees who all said they have yet to receive their pending salaries.
“The firm has been holding salaries of more than 50 employees for over a year now and even didn’t reply to legal notices. The founder has been unresponsive and even mentioned that he doesn’t owe us any explanation on multiple occasions,” said a former employee requesting anonymity.
Bengaluru-based Vishwa Nath Jha did admit that the company had not deposited TDS on behalf of employees for the last two fiscal years. “The startup is still not generating surplus cash to clear long-standing dues. We have been transparent in our communications with the concerned ex-team members. We are working hard to become operationally cash flow positive by Q2 of 2024 to sustain company operations and support our current team members. Additionally, Saarthi.ai is actively in talks with investors to raise fresh capital to address outstanding debts and liabilities,” said Jha.
Source: Hindustan Times