The funding round was led by an undisclosed family office and also saw participation from existing investors, including Stride Ventures
GoMechanic claimed it has witnessed a 4X jump in revenue since acquisition and is well-poised to double its revenue by the end of FY24
The startup was sold in a fire sale to competitor and Lifelong Group-owned Servizzy earlier this year after its erstwhile cofounders publicly admitted to fudging numbers
Fresh off the fire sale, auto spare parts startup GoMechanic, recently acquired by Servizzy, has raised $6 Mn in a strategic funding round led by an undisclosed family office.
The round also saw participation from other existing investors, including Stride Ventures.
A company spokesperson told Inc42 that GoMechanic will utilise the fresh capital to expand its footprint to new and uncovered areas across the country. The funding will also be used to venture into new categories and launch different formats of franchisee workshops.
Commenting on the fundraise, the new cofounder and chief executive officer (CEO) Himanshu Arora said, “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.”
In a statement, the company said that its ‘sole purpose’, post acquisition, has been to create transparency and be more cost-effective and efficient. GoMechanic further claimed that, going forward, it is committed to fostering strong customer loyalty and cultivating brand loyalty.
In what is arguably the first insight into the startup’s performance since acquisition, the auto after-sales startup said it has witnessed a 4X jump in revenue under the leadership of new cofounder and chief operating officer (COO) Muskan Kakkar. GoMechanic also claims to be well-poised to double its revenues by the end of the current fiscal year (FY24).
It also claims to have seen ‘exponential growth’ and an ‘increase in engagement and retention’ since the acquisition. Alongside, the startup has also expanded its business lines to include new verticals such as ‘GoMechanic Service Business’, ‘GoMechanic Spares’, and ‘GoMechanic Accessories’.
The startup has also ventured into the premium services market with ‘GoMechanic LUXE’, offering service centres for luxury cars across the country. While the premium vertical manages over 600 luxury cars a month, GoMechanic Service handles 800 cars per day.
As per the company, sales of its MILES membership programme per month surged 72% in October 2023 compared to April 2023. It also sells products such as vacuum cleaners, Android car screens and tire inflators on ecommerce platforms now to further spruce up the topline.
The new fundraise comes eight months after competitor and Lifelong Group’s subsidiary Servizzy acquired the startup in a fire sale in a deal pegged at INR 220 Cr.
Founded in 2016 by Amit Bhasin, Kushal Karwa, Nitin Rana and Rishabh Karwa, GoMechanic landed in trouble earlier this year after cofounder Bhasin publicly admitted to fudging numbers, which led to an investor-led forensic audit into the company.
Recently, the Economic Offences Wing of the Delhi Police registered an FIR against the four original cofounders of the startup and key management personnel (KMP) for alleged fraud and cheating based on a complaint filed by GoMechanic’s key investors in June 2023.
The cofounders are said to have falsified bank statements, inflated revenues, and syphoned off money in a saga that began at the startup’s seed stage in 2017. Amid all these controversies, at least two of GoMechanic’s founders are said to be working on their respective new ventures.