After being in advanced stages of raising funds for the past four months, automobile repair and service solutions startup GoMechanic has secured Rs 105 crore in a Series B funding round led by Chiratae Ventures and Sequoia Capital.
Orios Venture Partners also participated in the round.
The fresh funds for the Gurugram-based company have come after being in advanced talks of raising capital from Fosun International and Chiratae Ventures.
Entrackr had exclusively reported this development in August and that GoMechanic was in advanced stage to raise $15 million in a fresh round.
GoMechanic is planning to infuse the new capital toward scaling up its operations and expand to about 30 cities in 2020. Besides, the company is also eyeing to expand its pan-India workshop network to 1,000 in the next two years, said a LiveMint report.
As a part of the ongoing Series B round, the firm had recently received $5 million (Rs 35.69 crore) from existing backer Sequoia Capital.
Founded by Amit Bhasin, Rishabh Karwa, Kushal Karwa and Nitin Rana in 2016, GoMechanic offers three plans – Basic, Standard, and Comprehensive.
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.
It picks up cars from the customer’s doorstep and delivers after servicing. The company claims to cut costs up to 40% by procuring parts in bulk, lower labour costs and real estate rentals.
Apart from this, 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.
Last month, the company hired former Ashok Leyland executive Suyash Kumar to build an integrated EV strategy for the company.
Besides Sequoia, the company has also raised funds from Oris Ventures, Venture Catalyst and several angel investors including Kunal Bahl, Rohit Bansal, and Dhianu Das.
GoMechanic counts Blume Ventures-backed Pitstop, MY TVS, Crossroads, and Mahindra First Choice, among its major competitors.