New Delhi: GoMechanic, India’s largest technology-enabled auto after-sales service and spare parts company, today announced securing US$42Mn in Series C funding in a round led by Tiger Global Management with the existing investors Sequoia Capital India, Orios Venture Partners & Chiratae Ventures participating. It is the 4th round of institutional funding for GoMechanic. The proceeds of this funding round will be used to accelerate GoMechanic’s growth and expansion in Tier ⅔ cities in India, ramping up the technology team and launching operations in the international markets.Also Read - Maharashtra Live: Harish Salve To Appear For Shinde Camp, Sibal-Singhvi To Represent Uddhav in SC
The fundraise also includes $5 million buyback of ESOPs of the early employees of GoMechanic. GoMechanic will take its presence from the current 35 cities to 100+ cities in India and triple the technology team size from the current 60. Prior to this round, GoMechanic had raised a total of $21 mn from Sequoia Capital India, Orios Venture Partners and Chiratae Ventures. Earlier in 2020, Pawan Munjal, Chairman, MD & CEO, Hero Motocorp invested an undisclosed amount in the company. GoMechanic has defined the much necessary MRP in the industry, ushered in transparency and easy availability of genuine spare parts and is now set to cater to a set of new customers in India and overseas. Also Read - Girls In This Rajasthan Town Wield Swords & Spears On Rajput Warrior's Birth Anniversary
GoMechanic founders in a statement said, “We are thrilled to welcome Tiger Global as our partner at the cusp our next phase of growth. The current fund raise is further validation of the hard work put in by the GoMechanic team over the last 5 years and further cements our position as the undisputable market leader in the auto aftermarket ecosystem. We will continue to invest in expanding our operations and spare parts supply chain in India while also exploring global opportunities. 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.” Also Read - National Doctors’ Day 2022: Know Date, History, Theme of This Day
In his comments, Abhishek Mohan, Principal, 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 a deep foray into spares which is a USD 7 billion opportunity with large profit pools. The team has also deployed tech across the value chain exceptionally well. This additional growth capital will enable the company to grow faster and tap into newer opportunities.”
Rehan Yar Khan, Managing Partner, Orios Venture Partners, said, “The servicing and repairing of cars has been operating on the same model since World War II, alongside exorbitantly priced system of spare parts & accessories. We believe that car ownership should be a joy and in GoMechanic we found a team that shared that vision. We invested with them at Seed and every round after and are delighted to see the heights they have taken the space to. We welcome Tiger Global, on this mission to transform car ownership experience with more smiles per mile.”
Ranjith Menon, Executive Director of Chiratae Ventures, said,“We continue to be excited about the vision GoMechanic team has set for themselves. India is the 5th largest auto-market globally. As it has happened in other industries, digitization and changing consumer trends will have an impact on the way products and services are consumed in this sector. Delivering personalized experiences to the end consumer while standardizing the processes on the supply side through technology will enable GoMechanic to become the breakout brand.”
GoMechanic was started by Kushal Karwa, Amit Bhasin, Rishabh Karwa, and Nitin Rana. GoMechanic is currently India’s largest network of technology-enabled car service and spare parts centres, offering a seamless car service experience at the convenience of a tap. GoMechanic’s asset light model with centralized bulk procurement of spare parts from OEM’s, zero real-estate overheads and technology- driven efficiency, results in significant savings which are passed onto the customers. Currently, GoMechanic has over 600 car repair workshops across 35 cities in India, including Delhi-NCR, Hyderabad, Mumbai, Pune, Bengaluru, Chennai and Kolkata. It currently services 2+ million cars annually and is targeting 10 million customers by 2021.