Bengaluru CEO’s passport with US visa stolen by ex-employee after mass layoffs.
Saarthi AI faces allegations of unpaid salaries, CEO claims passport theft hinders fundraising, while employees accuse the startup of withholding pay for over a year.
Bengaluru-based startup Saarthi AI seems to be mired in ongoing challenges. After conducting mass layoffs last year in an effort to achieve profitability, the company has allegedly withheld salaries for several employees since March 2023. Recently, Saarthi AI’s CEO, Vishwa Nath Jha, claimed that a former employee stole his passport, which contained a US visa. In July, Jha informed the news agency PTI that the company had to lay off employees due to pressure from investors.
A new report from Entrackr today adds another layer to the unfolding story. Jha, in an interview with the tech news website, accused a senior employee of stealing his passport, which has hindered his ability to travel abroad to secure additional funding for the struggling company.
"Although I have managed to get a new passport, I am still waiting to obtain a US visa again. It's a lengthy process," Jha said. He dismissed the allegations of unpaid salaries, calling them a baseless attempt to tarnish the company’s reputation. Jha asserted, "No salaries have been withheld, and these claims are merely a tactic to defame the AI startup. We are planning to fill key positions as we negotiate business deals with several banks and NBFCs."
However, the narrative from current and former employees differs significantly. The mass layoffs in September last year reportedly reduced Saarthi AI’s workforce to just 40 employees. Entrackr spoke to about a dozen employees, all of whom claimed they have yet to receive their pending salaries.
"The company has withheld salaries for more than 50 employees for over a year and has not responded to legal notices. The founder has been unresponsive and has repeatedly stated that he doesn’t owe us any explanation," said a former employee who wished to remain anonymous. Vishwa Nath Jha acknowledged that the company had not deposited TDS (Tax Deducted at Source) on behalf of employees for the last two fiscal years. He explained, "The startup is still not generating enough surplus cash to clear long-standing dues. We have been transparent in our communications with the affected ex-team members. We are working diligently 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 engaging with investors to raise fresh capital to address outstanding debts and liabilities."
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