After laying off 70% employees, AI startup CEO claims not able to go to the US to raise funding as employee stole passport with US visa

Deeptech startup Saarthi.ai has encountered significant difficulties over the past year, failing to pay overdue salaries to both former and current employees. The company has also reduced its workforce by over 70%.
According to Entrackr, Saarthi.ai’s staff has decreased from 140 to 40 since March 2023, with many employees still awaiting their salaries.Additionally, the firm has not remitted tax deducted at source (TDS) to the government for the past two fiscal years.
In July 2023, a PTI report highlighted the layoffs and pending dues without providing extensive details. CEO Vishwa Nath Jha assured that pending salaries would be cleared within three months.

Salaries not paid despite legal notices

A former employee, speaking anonymously, stated that the company has withheld salaries for over 50 employees for more than a year and has not responded to legal notices. The founder has reportedly been unresponsive and claimed he owes no explanations.
Addressing allegations of deliberately delaying salaries, Jha denied the claims, suggesting they are 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 senior employee stole his passport with a US visa, hindering his ability to travel for fundraising. 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 surplus cash to clear long-standing dues. He also admitted that Saarthi.ai had not deposited TDS for the last two fiscal years.
He emphasized that the company has been transparent with affected ex-employees and is working to become cash flow positive by Q2 of 2024. Saarthi.ai is also in talks with investors to raise fresh capital to address outstanding debts and liabilities.
Founded in 2017 by Jha, Sameer Sinhaa, and Sangram Sabat, Saarthi.ai specializes in conversational AI for low-resource and global languages, including Indic, South Asian, Arabic, and European languages. The Bangalore-based startup has received funding from Kunal Shah’s QED Innovation Labs, Capri Global Capital, and Lead Angels Network, among others.