Car servicing startup GoMechanic on Wednesday said it has raised USD 42 million (around Rs 311 crore) in a funding round led by Tiger Global Management. The Series C funding round also saw participation from existing investors Sequoia Capital India, Orios Venture Partners and Chiratae Ventures. It is the fourth round of institutional funding for the company which plans to utilise the proceeds to accelerate its growth in tier II and III towns, ramping up the technology team and launching operations in international markets.
Prior to this round, GoMechanic had raised USD 21 million from Sequoia Capital India, Orios Venture Partners and Chiratae Ventures. Earlier in 2020, Pawan Munjal, Chairman, MD & CEO, Hero MotoCorp also invested in the company. “The current fund raise is further validation of the hard work put in by the GoMechanic team over the last five years and further cements our position as the undisputable market leader in the auto aftermarket ecosystem,” GoMechanic founders said in a statement. The company would continue to invest in expanding its operations and spare parts supply chain in India while also exploring global opportunities, they noted.
“Our intention is to make India the innovation hub in auto aftermarket technology and services similar to how it has become a manufacturing hub for a lot of global auto players,” the founders said. GoMechanic plans to enhance its presence from the current 35 cities to 100 plus locations in the country and triple the size of the technology team from 60. Started by Kushal Karwa, Amit Bhasin, Rishabh Karwa and Nitin Rana, GoMechanic has over 600 car repair workshops across 35 cities in India, including Delhi-NCR, Hyderabad, Mumbai, Pune, Bengaluru, Chennai and Kolkata. It services over 20 lakh cars annually and is targeting one crore customers by 2021-end.