Sequoia emphasises 'zero tolerance' for irregularities after GoMechanic row

Venture capital firm writing off investment in GoMechanic and may take action against company's founders: Sources

US venture capital firm (VC) Sequoia has told firms in its portfolio it has "zero tolerance" for financial irregularities, reaffirming the policy after governance lapses at India’s GoMechanic, sources said.

GoMechanic is laying off 70 per cent of its workforce and seeking funds after investors earlier in January flagged accounting irregularities at the aftermarket automotive service maintenance company. It is the third Sequoia-backed start-up in over a year, after Singapore-based Zilingo and fintech unicorn BharatPe, to report financial irregularities.

“We have heard that Sequoia is internally re-emphasizing that there will be zero tolerance for such actions and if material fraud