GoMechanic, a tech-enabled auto after-sales service and spare parts company has raised $42 million in Series C funding led by Tiger Global Management with participation from existing investors - Sequoia Capital India, Orios Venture Partners and Chiratae Ventures.
This is GoMechanic’s fourth institutional funding round. The proceeds will be used to accelerate GoMechanic’s growth and expansion in Tier 2,3 cities , ramping up the technology team and launching international operations. The company will take its presence from the current 35 cities to 100 plus pan India and triple the size of its technology team from the current 60. The fundraising also includes $5 million buyback of ESOPs of the early employees of GoMechanic.
Prior to this round, GoMechanic had raised $21 million from Sequoia Capital India, Orios Venture Partners and Chiratae Ventures. Earlier in 2020, Pawan Munjal, Chairman, MD & CEO, Hero Motocorp, also invested an undisclosed amount in the company.
“We are thrilled to welcome Tiger Global as our partner at the cusp our next phase of growth. The current fund raise is further validation of the hard work put in by the GoMechanic team over the last 5 years and further cements our position as the undisputable market leader in the auto aftermarket ecosystem. We will continue to invest in expanding our operations and spare parts supply chain in India while also exploring global opportunities. Our intention is to make India the innovation hub in auto aftermarket technology and services similar to how it has become a manufacturing hub for a lot of global auto players” GoMechanic founders Kushal Karwa, Amit Bhasin, Rishabh Karwa and Nitin Rana, said in a statement.
GoMechanic’s asset-light model with centralised bulk procurement of spare parts from OEM’s, zero real-estate overheads and tech-driven efficiency, results in significant savings which are passed onto the customers. Currently, it has over 600 car repair workshops across 35 cities, including Delhi-NCR, Hyderabad, Mumbai, Pune, Bengaluru, Chennai and Kolkata. It currently services over 2 million cars annually and targets 10 million customers by 2021.