After layoffs, GoMechanic approaches Cars24, Spinny for potential buyout
Sequoia and Softbank-backed, which offers car washing and repair services, has approached car-selling marketplaces and , among others, for a potential acquisition.
The founders have sent a proposal as a part of initial talks for a potential buyout to these two startups, Moneycontrol reported. GoMechanic has reached out to most of the players in the ecosystem, a source told the publication.
YourStory has not been able to independently verify this report.
The news about a potential sell-off comes a week after the company laid off about 70% of its workforce and misled investors about its sales numbers and costs. Amit Bhasin, the company's CEO admitted to tampering with financial reports without going into any specifics in a LinkedIn post.
GoMechanic inflated its sales numbers and showed lower expenses than it actually incurred in a recent pitch to SoftBank, YourStory earlier reported.
The Gurgaon-based company was reportedly in talks with Softbank and Malaysian sovereign fund Khazanah Nasional to raise $75-$80 million in funding at a $600-$650 million valuation.
The startup’s existing investors—Orios Venture Partners, Chiratae Ventures, and Sequoia Capital—have reappointed EY to probe the case.
GoMechanic last raised $420 million in a Series A round led by Tiger Global Management at a valuation of $285 million.
Edited by Akanksha Sarma