According to the media reports, Pricewaterhouse (PwC), the auditor of troubled car servicing startup GoMechanic in the FY '20, reported that how the Sequoia Capital-backed startup have discrepancies in accounting its business activities and assets. 

Pricewaterhouse has come to light a day after GoMechanic founder Amit Bhasin confessed the accounting error and getting "carried away" while inflating growth. Pricewaterhouse's 'qualified opinion' was revealed just one day after GoMechanic founder Amit Bhasin admitted on LinkedIn.

Pricewaterhouse said that the company was told to fix the problems. Among the non-compliances listed in the Tiger Global-backed company's FY20 audited financial report's 'qualified opinion' were failing to hold that period's annual general meeting within a specified period, failing to maintain inventory records for receipts and issuance of goods directly received by customers, and failing to maintain formal documentation to map services rendered by automobile workshops to end customers. 

The board of directors at Targetone Innovations, GoMechanic's parent company, stated in a new report that there were some documentations issues in inventory records that were observed during the audit, and the same has been rectified now, without providing any substantiation as to what went wrong or how and when it was rectified. 

Sequoia Capital owns 27 per cent of GoMechanic, Tiger Global owns 10 per cent, Orios Venture Partners owns 17 per cent, and Chiratae Ventures owns 10 per cent. Strides Ventures, which has disbursed debt to the troubled startup, is also on the list of investors.

GoMechanic, which was founded in 2016, has raised approximately $62 million in total funding since its inception and was last valued at approximately $350 million when Tiger Global invested in 2021.