GoMechanic 2.0: Firm raises $6 mn from marquee investor, existing shareholders

Car services and repair platform GoMechanic on Wednesday said it has raised $6 million (approximately Rs 50 crore) from an undisclosed marquee investor along with contributions from existing investors.

The company was acquired by Servizzy, a subsidiary of the Lifelong Group, in March after financial irregularities were found under previous management and the firm was put on sale by the investors.

"GoMechanic is pleased to announce the recent success of its latest fundraising round, securing an impressive $6 million in capital," the company said.

It is the first fundraise of the company after getting acquired by Servizzy.

"This achievement serves as a profound vote of confidence towards the company and in the potential of its business model from the investment community, the existing shareholders, Stride Ventures and Lifelong Group, and the startup community. This exemplifies the company's unwavering and holistic growth and progress," GoMechanic new co-founder and CEO Himanshu Arora said.

Without disclosing name of the investor, GoMechanic said that the marquee investor is "a notable leader in the investment industry", has taken on a pivotal role as the lead investor along with the existing shareholders. "We are committed to build a brand that a consumer can trust for their car repairs and services. Our aim is to serve 1 in 10 after-market cars in next 3 years," Arora said.

GoMechanic Service claims to handle an influx of 800 cars per day now.

"After the acquisition, the company’s sole purpose is to create transparency and be more cost-effective and efficient. Under the leadership of Muskan Kakkar, COO and co-founder, the company has expanded its business lines, including 'GoMechanic Service Business', 'GoMechanic Spares,' and 'GoMechanic Accessories’. 

The company has experienced remarkable growth, with a fourfold increase in revenue. This refined approach to business practices is positively influencing the company's performance, with projections indicating that ‘GoMechanic Spares’ and ‘GoMechanic Accessories’ will double their revenues by the end of this fiscal year, underscoring the robust potential within these specific areas," said the firm in a statement.

After its struggle to raise capital since the last funding round in June 2021, the company went on to admit to financial irregularities in January, following which it also laid off 70 per cent of its 1,000-strong workforce.