GoMechanic says that the new funds will be used to accelerate GoMechanic’s growth and expansion in tier 2 and 3 cities in India, as well as increase its technology team and launch operations in international markets.
Automotive Aftermarket and Parts Startup GoMechanic announced today that it will secure a $42 million investment, approximately Rs 312 crore, in Series C funds. It is GoMechanic’s fourth round of institutional funding, led by Tiger Global Management with investors Current: Sequoia Capital India, Orios Venture Partners, and Chirata Ventures participate. The company says the new funds will be used to accelerate GoMechanic’s growth and expansion in Tier 2 and Tier 3 cities in India, as well as increase its technology team and launch operations in international markets.
Commenting on receiving the new round of funding, the GoMechanic founders said: “We are delighted to welcome Tiger Global as our partner on the cusp of the next phase of growth. The current fundraising process is further validation of the hard work the GoMechanic team has done over the past five years. and further enhances our position as the undisputed market leader in the auto parts market ecosystem.We will continue to invest in expanding our operations and parts supply chain in India while exploring global opportunities.We aim to make India a hub for technological innovation and auto parts market services, similar to The way it has become an industrial hub for many global automakers.”
Abhishek Mohan, Director of Sequoia India, said: “Since Sequoia Capital India first partnered with GoMechanic in 2018, the company has had a very strong growth trajectory. It has expanded geographically to several cities and made deep progress in parts, which is a 7 billion US dollar opportunities with great profits. Rehan Yar Khan, Managing Partner, Oreos Venture Partners, added: “We have invested with them in Seed and in each subsequent run and are thrilled to see the heights they have reached in the space. We welcome Tiger Global, on this mission to transform the vehicle ownership experience with the most smiles per mile. “.
While Ranjith Menon, CEO of Chiratae Ventures, said: “By offering personalized experiences to the end consumer, while standardizing operations on the supply side through technology, will allow GoMechanic to become the leading brand.” In June 2020, Hero MotoCorp Chairman, CEO and CEO Pawan Mangal also made an undisclosed investment in GoMechanic.
Founded in 2016 by Kushal Karwa, Amit Bhasin, Rishabh Karwa and Nitin Rana, GoMechanic is one of the most popular car repair service providers. The company makes wholesale purchases of parts from OEMs and has no real estate overhead, which it says generates significant savings that are passed on to customers. GoMechanic currently has more than 600 auto repair shops in 35 cities in India, including Delhi-NCR, Hyderabad, Mumbai, Pune, Bengaluru, Chennai and Kolkata. It currently serves more than two million vehicles annually and is targeting 10 million customers by 2021.