According to Entrackr, Saarthi.ai has reduced its workforce from 140 to 40 since March 2023, with many employees still waiting for their salaries. Also, the company has not remitted any tax deducted at source (TDS) to the government for the last two financial years.
In July 2023, a PTI report highlighted the layoffs and pending dues without providing detailed details. The company’s CEO Vishwa Nath Jha assured that the pending salaries would be settled within three months.
Unpaid wages despite formal notices
A former employee, speaking on condition of anonymity, said the company withheld wages for more than 50 employees for more than a year and failed to respond to formal notices. The founder reportedly did not respond and said he did not owe any explanation.
Responding to allegations of deliberate delay in salary payments, Jha denied the allegations, suggesting that they were attempts to defame the company. He mentioned plans to fill key positions as the company negotiates deals with several banks and NBFCs.
Jha also alleged that a former high-ranking employee stole his passport with a American Visawhich is hampering his ability to travel to raise funds. He has since reissued his passport but is still waiting for a new US visa. Jha claimed that the startup is not yet generating enough excess cash to settle long-pending dues. He also admitted that Saarthi.ai has not filed TDS for the last two financial years.
He stressed that the company has been transparent with the affected former employees and is working to become cash positive by the second quarter of 2024. Saarthi.ai is also in talks with investors to raise fresh capital to meet outstanding debts and liabilities.
Founded in 2017 by Jha, Sameer Sinhaa and Sangram Sabat, Saarthi.ai specialises in conversational AI for low-resource and global languages, including Indian, South Asian, Arabic and European languages. The Bangalore-based startup has received funding from Kunal ShahQED Innovation Labs, Capri Global Capital and Lead Angels Network, among others.
