Multi-brand car workshop and spare parts platform GoMechanic is in talks with Sequoia Growth Fund to raise a Series C round, said three people aware of the details of the conversation. The talks have come up at a time when the company has been expanding its spare parts business through franchise outlets.
“The talks have been on for about six weeks and Sequoia Growth Fund may lead a $50 million,” said one of the sources requesting anonymity. If the talks go through, the new round will likely help GoMechanic onboard more workshops and ramp up its spare parts vertical: GoMechanic Spares.
Through GoMechanic Spares, the company will distribute multi-brand spare parts across brands, variants and models. According to experts, the spare parts business is largely unorganised and lucrative because of handsome margins.
“Besides Sequoia Growth Fund, the new round may see the participation of a couple of new investors, including Eight Roads Ventures. GoMechanic would be valued over $200 million in the Series C round,” said another person who also wished not to be named as talks are private.
Caveat: the terms of the deal may change and it may not materialize.
Entrackr’s queries sent to GoMechanic and Sequoia didn’t elicit any immediate response. We will update the story in case they do.
According to sources, there has been an increased interest in the Gurugram-based startup from venture capitalists and private equity players. It’s worth noting that GoMechanic has been in the market to raise funds since late last year.
Launched in 2016, GoMechanic enables car owners to book online appointments for reliable servicing. As per its website, the platform has over 500 workshops and to date, it has serviced over 2 million cars. So far, the company has mopped up $20 million across two institutional rounds from Sequoia Capital, Chiratae Ventures and Orios Venture Partners.
In December 2019, the company had raised $14.7 million in its Series B round. Last year, two-wheeler manufacturer Hero Motocorp’s chairman Pawan Munjal also invested in GoMechanic in his personal capacity.