Startup technology-enabled car service provider GoMechanic said it has raised Rs 105 crore in Series B funding in a round led by Chiratae Ventures and Sequoia Capital. Orios Venture Partners was the other investor which participated in the 3rd round of institutional funding, GoMechanic said in a statement.
According to reports, the startup plans to use these funds to expand to 30 cities by 2020, and further scale up its operations.
When car owners go for a repair job, they often come across the lack of transparency and quality in the services of local mechanics. This leaves them with no choice except to go to expensive authorised service centres. This kind of lack of choice led two IIM-A graduates – Amit Bhasin and Kushal Karwa – to start GoMechanic in April 2016.
The online platform allows people to avail hassle-free, fast, affordable, and quality services with transparency as the key factor. The objective is to offer a cost-effective and reliable solution in auto repairs and services. The customers can either opt for free car pick-up and drop service or book an appointment and drive to the GoMechanic workshop. The team claims that customers save more than 40 percent on their service and repair costs as compared to that of an authorised service centre. This is primarily due to centralised procurement and supply of spare parts and saving on labour costs.
The startup raised $250,000 in a seed round from angel investor Dhianu Das (Alfa Ventures) and Orios Venture Partners in August 2017. Earlier, in January this year, it raised Series A funding of $5 million from Sequoia Capital and Orios Venture Partners. Other investors in GoMechanic include Syed Safawi, former MD and CEO of VLCC, and other angels like Kunal Bahl and Rohit Bansal, founders of Snapdeal.
Commenting on the fund raised, GoMechanic Co-Founder Kushal Karwa said, “The money raised will allow us to continue our aggressive geographical expansion besides investment in innovation to keep us ahead of the curve.”
GoMechanic Co-Founder Amit Bhasin said the current fundraise will reinvigorate the company’s thrust in providing scalable technology first solutions for the $11 billion unorganised automotive repairs and maintenance market.
Chiratae Ventures Executive-Director Ranjith Menon said, “India is among the largest car manufacturers in the world where bulk of the cars on the road are out of warranty. We are excited to work with the GoMechanic team addressing this huge gap in a technology first manner.”
Commenting on the company’s investment in GoMechanic, Sequoia Capital India LLP Vice President Abhishek Mohan said, “In the 12 months since Sequoia India led the Series A, the company has scaled many times on the back of its asset light network of workshops and most importantly built true customer love. Given the massive market potential of $5 billion plus, we are excited to see what comes next.”
As of last year, the startup was servicing more than 3,500 cars a month across its 30+ workshops, and it now reports to have 215 workshops. With the fresh capital infusion, it aims to expand to more than 1,000 workshops by December 2021. GoMechanic currently competes with the likes of GoBumpr, MotorExpert, My Pitstop, MeriCAR, Cartisan, and Carz.
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