In an unusual development, Puneet Gupta, founder and CEO of personal care startup Clensta has alleged that the company’s official LinkedIn page was compromised, an hour after a detailed letter from him admitting to fudging the company’s books went up.
“Dear all, this is a serious offence somebody have done. One of our own team member, I believe, who holds our LinkedIn credentials, have written a false information. And we've just gone ahead to file a FIR,” Puneet Gupta said in a fresh post on LinkedIn on 14th October 2024, am hour after a letter was posted on the startup’s official page alleging mismanagement of the company’s financials.
Moneycontrol has seen the original post that alleged misdoings and the fresh post and has appended both in this copy. The developments come days after reports that the Parineeti Chopra-backed startup was in advanced talks to raise $10 million (around Rs 83 crore) in a Series B funding round, with Amazon expected to join as a new investor.
In the original post, Gupta wrote a long letter to employees, detailing the company’s financial woes and inflated P&L (profit and loss).
"I am writing this message with a deep sense of regret and responsibility for the position Clensta is currently in. I owe each one of you—employees and investors—a sincere apology for the way I have handled things, especially regarding the company’s cash flow, financial health, and overall transparency", Gupta said in the post.
"For the past two months, salaries have not been paid, and this is an unimaginable burden on all of you, particularly during the festive season. I deeply regret that my lack of vigilance and poor management of our finances has caused this hardship. This is entirely my fault, and I take full responsibility for the cash crun runch we’re facing. I realize now that my failure to foresee this has led to a situation where many of you, who believed in me and this company, are now forced to look for new jobs to sustain your lives and families. I am truly sorry, he added.
He further apologised to to the employees from Honasa, many of whom had joined the startup. "I was dishonest with you about Clensta’s financial health to convince you to join the company. You trusted me, and I betrayed that trust by misleading you. You left stable jobs, believing in the vision I sold, and now I’ve let you down. My actions have resulted in financial instability for you and your families, and for that, I am deeply sorry.'
He further apologised to investors for misrepresenting Clensta financials.
"I misrepresented Clensta’s financial position by showing manipulated P&L statements and providing a false sense of security. I kept lying about the true state of the business, and I recognize the betrayal this represents.", he said
He said he would work to find solutions to resolve the crisis.
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