GoMechanic, has secured $6 million in fresh capital to expand its market share in new and unserved regions.It will also extend services in different formats by establishing new workshops and franchises.
GoMechanic Co-founder Amit Bhasin admitted to financial misreporting in a LinkedIn post. The company was acquired by Lifelong Group, with a focus on building upon “GoMechanic’s business”.
Following its acquisition, the firm said it has drawn fresh plans to “create transparency and be more cost-effective and efficient”. It stated further, thatit has 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 on a growth drive
GoMechanic reportedly handles over 800 cars per day, that translates to a fourfold increase in units and revenue. Founded in 1985 by Atul Raheja, Lifelong 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 Tiger Global Management, Peak XV Partners(formerly Sequoia Capital India and SEA), Orios Venture Partners, and Chiratae Ventures.
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.
Previously, GoMechanic had confirmed to financial irregularities and received a notice to initiate insolvency proceedings.
