BENGALURU: Troubled car service and repair start-up GoMechanic has been acquired by Lifelong Group-led consortium. This announcement comes two months after the start-up’s co-founder Amit Bhasin admitted to financial reporting errors.
According to sources, investors - Tiger Global Management, Chiratae Ventures, Orios Venture Partners, among others- have written off their investments. Earlier, it was said that CarTrade was in advanced stage of discussion to buy GoMechanic, but it pulled out later. This acquisition will provide some relief to the start-up that has been facing many challenges in the past two months.
Sources said Lifelong Group will be focusing on to build GoMechanic’s business. Stride Ventures has led the deal conversations. Incorporated in 1985, auto components maker Lifelong Group will be a majority shareholder under Servizzy consortium in GoMechanic business. The group has been looking to expand its operations in the after-sales segment.
Founded in 2016 by Kushal Karwa, Amit Bhasin, Rishabh Karwa and Nitin Rana, GoMechanic is a network of technology-enabled car service centres. The company raised $62 million in funding so far and its latest funding round was in June 2021. As of July 31, 2022, the start-up had employed 1,230 people. The start-up was valued at $283 million in November 2021.
