New Delhi: Automobile repair and service solution startup, GoMechanic has raised Rs 105 cr ($ 14.7 mn) in a Series-B funding round, led by Chiratae Ventures and Sequoia Capital. The funding was also contributed by existing investor partner Orios Venture Partners.
The Gurugram based startup which started back in April 2016 will be investing in scaling up its operations. “We plan to expand and operate 20 more tier-II cities, by 2021,” Amit Bhasin, Co-founder, GoMechanic informed ETAuto in a telephonic conversation.
As of now, the company has its presence in nine cities namely Delhi NCR, Mumbai, Hyderabad, Bangalore, Chennai, Hyderabad, Pune and Chandigarh, Panchkula with over 215 operating workshops.
Founded by Amit Bhasin, Rishabh Karwa, Kushal Karwa and Nitin Rana, the startup initially operated on the seed capital galvanised by four of them. The first round of investment was pulled up after 5 months, in the year 2016 itself.GoMechanic Investments Overview
| Year | Investment Round | Investor | Investment |
| 2016 | Angel Investment | Dhianu Das | Rs 1.78 cr |
| 2017 | Seed Funding | Orios Venture Partners, Snapdeal Founders | Rs 7 cr |
| January 2019 | Series-A | Sequoia Capital, Orios Venture Partners | Rs 35 cr |
| December 2019 | Series-B | Chiratae Ventures, Sequoia Capital, Orios Venture Partners | Rs 105 cr |
GoMechanic claims to strive for genuine servicing and procuring spares directly from the automakers. Reiterating the genuineness of their spare parts, Bhasin said, “We have centralised spare parts procurement tie-up with a lot of companies including Maruti, Exxon Mobil and Hyundai Motor India. We procure cumulatively on behalf of all our workshops and the economies of bulk purchase are passed on to the customers.”
Commenting on the industry wide slowdown, Bhasin added, “Auto industry’s slowdown served us as an unique opportunity because GoMechanic is concerned with the average rides of the customer that are constantly on the rise.” Car maintenance is a function of the average distance covered by a vehicle and not on the number of cars on the road.
“With a large number of authorised dealerships shutting down, a lot of customers have entered the GoMechanic platform, which eventually is helping us to increase our business,” he added.
The company is also reworking its partnerships with Ola, Uber, ZoomCar and other insurance companies like HDFC Ergo, Tata AIG, GoDigit and Bharti AXA to optimise on their customer claims and management costs.
