The problems facing Bengaluru-based startup Saarthi AI don’t appear to be going away. In an attempt to turn a profit, the corporation carried out a large-scale layoff last year, and since March 2023, it has allegedly withheld the salaries of multiple employees.
The CEO of Saarthi AI now alleges that his passport, which had a US visa, was stolen by a former worker.
In July, Vishwa Nath Jha, the founder and CEO of Saarthi AI, informed news agency PTI that the company had to fire some staff to turn a profit. The layoffs were caused by “investor pressure,” he said.
A report that was released today in Entrackr gives the narrative a new angle. Speaking to the tech news website, Jha stated that he is unable to travel overseas to raise additional funding for the struggling company since a top employee seized his passport.
“Although I was able to obtain a new passport, I have not yet received my US visa. There’s a long line,” Jha remarked.
Discontent over unpaid salaries
He dismissed claims that employees’ salaries were being withheld. Jha stated that no salaries have been held back and called the allegations a tactic to damage the AI startup’s reputation. “We are looking to fill key positions as we negotiate deals with various banks and NBFCs,” he added.
However, the company’s current and former employees have a different tale to tell. The personnel of Saarthi AI was reduced to 40 employees due to the major layoffs that occurred in September of last year. About a dozen workers that Entrackr spoke with claimed they still hadn’t received their overdue salaries.
Over 50 employees’ salaries have been held by the company for more than a year, and they have even failed to respond to court orders. A previous employee, who asked to remain anonymous, claimed that the creator has been unresponsive and has even stated on several occasions that he owes us no explanation.
Based in Bengaluru, Vishwa Nath Jha acknowledged that for the previous two fiscal years, the company had not deposited TDS on behalf of its employees. “The startup is still not making enough money to pay off its outstanding debt. We have communicated openly and honestly with the worried former team members. To support our present team members and continue business operations, we are making great efforts to become operationally cash flow positive by the second quarter of 2024. Furthermore, Jha stated that Saarthi.ai is currently in active discussions with investors to secure additional funding to settle outstanding obligations and liabilities.
