Automobile repair and service solution startup GoMechanic is in the advanced stage to raise a new round from Fosun International and Chiratae Ventures, according to three sources aware of the transaction. This would be the second round of funding for the three and a half-year-old venture this year.
“GoMechanic has been engaged with Fosun and Chiratae for the past two months. The duo will pump in up to $15 million in the Gurugram-based venture,” said sources on the condition of anonymity.
In February this year, the company had raised about $5 million (Rs 35 crore) from Sequoia Capital.
GoMechanic has built a network of 150 plus car repair workshops across Delhi-NCR, Hyderabad, Mumbai, Pune, and Bengaluru. It claims to offer repair services at prices 40% cheaper compared to the general garages. The company saves costs by procuring parts in bulk, lower labor costs, and real estate rentals.
“The conversation between GoMechanic and the two investors has progressed into an advanced stage. If nothing goes wrong from here, the deal will be sealed by mid-September,” added sources. One of the three sources also emphasized that the round could be in the range of $10 to 15 million.
GoMechanic offers three subscriptions – Basic, Standard, and Comprehensive. The pricing depends on the model, variants, condition, and age of the vehicle. The company claims to service over 2 million cars and has one million customers.
Besides Sequoia, the company also raised proceeds from Oris Ventures, Venture Catalyst and several angel investors including Kunal Bahl, Rohit Bansal, and Dhianu Das.
Entrackr has contacted Tej Kapoor (Fosun) and Amit Bhasin (co-founder, GoMechanic) for comments. However, they declined to speak about it. Our queries sent to Karan Mohlaa (Chiratae) remain unanswered until the publication of this post. We will update the post as he responds.
GoMechanic competes with Blume Ventures-backed Pitstop, MY TVS, Crossroads and Mahindra First Choice.