GoMechanic turns EBITDA positive in first quarter of FY25
The company has attributed this growth to the guidance of its new founders, Himanshu Arora and Muskan Kakkar.
GoMechanic, an after-market automobile service network, has turned EBITDA positive in the first quarter of this financial year, with a top-line revenue of Rs 85 crore.
The company has attributed this growth to the guidance of its new founders, Himanshu Arora and Muskan Kakkar.
GoMechanic was acquired by Lifelong India in March last year, as the majority shareholder under its Servizzy entity, after the company's original founders were booked by the Delhi Police for alleged cheating and fraud.
Following its acquisition by Servizzy, the company has seen service revenue triple under the new management, contributing to its positive EBITDA, Go Mechanic said in a statement.
In FY2024, the company clocked a top-line revenue of Rs 210 crore rom services, spares, and accessories. GoMechanic currently services over 30,000 cars a month through a network of 600 workshops in over 50 cities, boasting a 50% repeat customer rate.
"We have managed to strike a balance between profitability and growth, ensuring that we continue to provide exceptional service to our customers while expanding our footprint," said Himanshu Arora, the new Co-founder & CEO of GoMechanic, in a statement.
"Our aim is to service 1 out of 10 cars in the country by FY 2027, and by then, we plan to be present in over 1000 cities across India," he added.
"This achievement underscores the hard work and dedication of our entire team, and we are excited about the future as we continue to set new benchmarks in the auto service industry," said Muskan Kakkar, the new Co-founder & COO of GoMechanic.
Last year, YourStory reported that the firm had been raising funds by misleading investors about its sales numbers and costs, inflating its sales figures, and showing lower expenses than it actually incurred in a pitch to SoftBank.
Later, the Delhi Police's Economic Offences Wing (EOW) booked GoMechanic’s original co-founders Amit Bhasin, Kushal Karwa, Rishabh Karwa, and Nitin Rana, along with other senior officials, for alleged criminal conspiracy, fraud, forging documents, cheating, and falsification of accounts.
In March last year, Delhi-based auto-parts company Lifelong India Pvt Ltd, under its Servizzy entity, acquired a majority share in GoMechanic.
In an effort to turn the company around, several initiatives were launched.
These include GoMechanic Accessories, which generated Rs 11.2 crore in revenue in the first quarter of FY2024-2025 through online and offline channels; GoMechanic Luxe, a premium service line for luxury cars launched last year with 11 centres; and the GoMechanic Protect + Warranty Program, offering extended warranties for car owners.
Responding to the rise in adoption of electric vehicles (EV), GoMechanic also launched specialised EV service stations across major cities.
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