GoMechanic raises up to ₹35 crore in funding round led by Sequoia Capital1 min read . Updated: 22 Jan 2019, 11:59 PM IST
- GoMechanic will use the fresh capital to expand to new cities
- The company plans to bulk up hiring at leadership positions
Automobile repair and service solution startup GoMechanic has raised ₹30-35 crore ($4-$4.9 million) in a Series A round led by Sequoia Capital, said three people aware of the development, requesting anonymity.
Last August, GoMechanic, run by Targetone Innovations Pvt. Ltd, raised an undisclosed amount in seed funding from early-stage venture capital fund Orios Venture Partners and angel investor Dhianu Das.
In 2016, it raised $250,000 from Venture Catalyst.
The three-year old start-up is also in talks to raise funds from Snapdeal co-founder Kunal Bahl and Oyo’s Ritesh Agarwal, said one of the people cited above.
The company will use the fresh capital to expand to new cities and bulk up hiring at leadership positions, he said, adding that it will also spend on brand-building.
Founded in 2016 by IIM-Ahmadabad alumni Kushal Karwa and Amit Bhasin, GoMechanic uses technology to offer automobile repair and maintenance services.
It has built a network of car repair workshops across Delhi-NCR, Hyderabad, Mumbai, Pune and Bengaluru. It is also planning to launch operations in Indore, Kanpur and Jaipur, the person cited above said.
The Gurugram-based startup claims to offer services at a 40% discount, by reducing labour costs, bulk procurement of parts and minimizing real estate expenses.
GoMechanic competes with Blume Ventures-backed Pitstop, run by ChatPay Commerce Pvt. Ltd, besides Mahindra First Choice, MY TVS and Crossroads.
According to CarXpert, the car servicing industry, which includes single-brand authorised workshops run by original equipment manufacturer dealers and unorganized players, is projected to be valued at ₹33,000 crore in 2020 from ₹20,000 in 2017. CarXpert, run by Indian business Conglomerate Skylark, expects multi-branded car solution providers to grow up to 8% by 2020.
E-mail queries to GoMechanic’s Karwa didn’t elicit any response till press time. Sequoia declined to comment on the investment.