Comments
Auto components maker Lifelong Group on Wednesday said it has acquired stressed automobile after-sales service start-up GoMechanic for an undisclosed amount.
The Group will be a majority shareholder under Servizzy consortium, in GoMechanic business, Lifelong said in a statement.
“Acquisition of the GoMechanic business, aligns with our strategic vision of synergising the Lifelong Group’s proven expertise in the automotive industry. We are focused on building upon GoMechanic’s business journey, and will continue revolutionising the Indian automotive service and repair industry,” a spokesperson at Lifelong said.
The acquisition and new ownership structure with Lifelong Group, a manufacturer of automotive components, medical devices, and a player in the e-commerce space, heralds a new phase for GoMechanic business, the company said.
Sale process
“Due to the recent financial difficulties at GoMechanic, the board and shareholders with support from Stride Ventures initiated a speedy and widely publicised sale process to ensure the continuity of business. The Servizzy consortium, to be led by the Lifelong Group, emerged as the strongest bidder in this process for the acquisition of the GoMechanic Business in accordance with the terms and conditions contained in the agreement,” the companies said.
The transaction will assist in preserving the ecosystem at large and also enable providing continued livelihood to the employees at GoMechanic. The car servicing platform navigated the recent challenges by continuing operations across 800 workshops and servicing 30,000 vehicles in January.
In January, GoMechanic co-founder Amit Bhasin admitted to errors in financial reporting, following which a forensic audit has been ordered and a business restructuring undertaken which will see 70 per cent of the 1,000-odd workforce being laid off.
Nearly two years after it raised $42 million in funding, it emerged that GoMechanic cooked its financial books by inflating revenues.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.