Seven months post-acquisition, GoMechanic secures $6M in fresh capital
The automobile service and repair company plans to use the funds for growing its footprint and expansion in new and uncovered territories including different formats of onboarding new workshops and franchises.
Car service and repair firm, which was acquired by Lifelong Group’s Servizzy seven months ago following financial irregularities, has secured $6 million in fresh capital.
The funding was led by a “marquee” investor, along with participation from existing shareholders, the company said in a statement, without disclosing the name of the lead investor. Its existing shareholders include Stride Ventures and Delhi-based Lifelong India Pvt Ltd.
The automobile service and repair company plans to use the funds for growing its footprint and expansion in new and uncovered territories including different formats of onboarding new workshops and franchises, it told YourStory.
Earlier this year, GoMechanic had admitted to financial irregularities and received a notice to initiate insolvency proceedings. Two months after GoMechanic Co-founder Amit Bhasin admitted to financial misreporting in a LinkedIn post, it was acquired by Lifelong Group, with a focus on building upon “GoMechanic’s business”.
Seven months post-acquisition, the firm said it aims to “create transparency and be more cost-effective and efficient”. It claims to have expanded its business lines, including service, spares, and accessories, as well as ventured into the luxury and premium services market with GoMechanic LUXE.
The luxury car service centres, under LUXE, specialising in servicing brands like Audi, BMW, Mercedes, and Porsche, manage over 600 luxury cars per month, the firm noted.
GoMechanic claims that it handles over 800 cars per day, which according to the company, translates to a fourfold increase in units and revenue.
Founded in 1985 by Atul Raheja,India Pvt Ltd is a Delhi-based supplier of automotive components, plastics, and casting components, having a turnover of $10 million, according to its website.
Before its acquisition by Lifelong Group’s Servizzy, GoMechanic had raised a total funding of $62 million from investors including, (formerly Sequoia Capital India and SEA), , and .
Edited by Kanishk Singh