Automobile repair and service solution provider GoMechanic has received $5 million (Rs 35.69 crore) from existing backer Sequoia Capital. The investment seems to be a part of Series B round in which Fosun International and Chiratae Ventures were also in talks to invest around $15 million in the Gurugram-based company.
GoMechanic had raised $5 million in Series A round in January 2019.
According to regulatory filings with the MCA, the company has allotted 3246 shares at a price of Rs 1,09,967.8 per share. Sequoia has invested the sum mentioned above through SCI Investment VI and Redwood Trust.
Following the capital infusion, GoMechanic’s estimated value will be around Rs 316 crore.
Notably, the initial private placement offer dated October 29 by GoMechanic was circulated with Orios Venture Partners and Sequoia, both being existing investors in the company. The offer stood at around Rs 105 crore, revealed the regulatory filings.
Working on a franchise owned company operated (FOCO) model, GoMechanic has a network of over 150 car repair workshops across Delhi-NCR, Hyderabad, Mumbai, Pune, and Bengaluru.
Founded by Amit Bhasin, Rishabh Karwa, Kushal Karwa and Nitin Rana in 2016, GoMechanic offers three subscriptions – Basic, Standard, and Comprehensive.
It picks up cars from a customer’s doorstep and delivers after servicing. The company claims to cut cost up to 40% by procuring parts in bulk, lower labor costs, and real estate rentals.
Besides, GoMechanic is making infrastructure renovation at its workshops to accommodate dedicated EV servicing bays. The company has also inked exclusive services and maintenance partnership with Revolt Motors.
Earlier this month, GoMechanic had hired former Ashok Leyland executive Suyash Kumar to build an integrated EV strategy for the company to ensure effective delivery further.
Pitstop, FirstU, MY TVS, Crossroads and Mahindra First Choice are notable companies in car repair and maintenance segment.
Apart from Sequoia and Orios, GoMechanic has raised funds from Venture Catalyst and several angel investors including Kunal Bahl, Rohit Bansal, and Dhianu Das.
