[Funding alert] GoMechanic raises $42M from Tiger Global, Sequoia, others
The funds will be used for rapid expansion in Tier II and Tier III towns, and will also be invested in enhancing technology. Currently, the firm operates in 35 cities across India.
Spare parts and multi-brand car workshophas raised $42 million in Series C funding round led by , with , and participating in the round.
Avendus is the exclusive financial advisor to the transaction.
GoMechanic, which is run by Targetone Innovations Pvt Ltd, will use the fourth round of funding for expansion in Tier II and Tier III cities in India and also launch operations in international markets. Currently, the firm provides their services in 35 cities, including Mumbai, Delhi-NCR, Kolkata, Bengaluru, and Chennai. The goal is to operate in more than 100 cities and triple the team size from 60 people.
“We are thrilled to welcome Tiger Global as our partner at the cusp of our next phase of growth. We will continue to invest in expanding our operations and spare parts supply chain in India while also exploring global opportunities. Our intention is to make India the innovation hub in auto aftermarket technology and services similar to how it has become a manufacturing hub for a lot of global auto players,” GoMechanic’s founders said in a statement released by the firm.
So far, the five-year-old startup has raised close to $59.8 million, according to business information platform Crunchbase, with Hero MotoCorp’s CEO and MD Pawan Munjal also investing in the firm.
Gurugram-based GoMechanic was founded in 2016 by Kushal Karwa, an MBA graduate from Indian Institute of Management - Ahmedabad; Amit Bhasin, who worked at OYO Rooms before joining the car maintenance provider; Rishabh Karwa, a civil engineer; and Delhi-based Nitin Rana.
“It (GoMechanic) has expanded geographically to several cities and made a deep foray into spares which is a $7 billion opportunity with large profit pools. The team has also deployed tech across the value chain exceptionally well. This additional growth capital will enable the company to grow faster and tap into newer opportunities,” said Abhishek Mohan, Principal, Sequoia India.
Apart from local car service providers, GoMechanic competes with Blume Ventures-backed Pitstop, which recently raised $3.5 million in a Series B funding round led by Hyderabad-based investment Venture East.
Currently, GoMechanic has over 600 car repair workshops and the firm services more than two million cars every year. The startup is targeting 10 million customers by 2021.
Edited by Kanishk Singh