GoMechanic, the technology-enabled auto after-sales service and spare parts company, has secured $42 million in Series C funding in a round led by Tiger Global Management with the existing investors Sequoia Capital India, Orios Venture Partners & Chiratae Ventures also participating.
It is the fourth round of institutional funding for GoMechanic. The proceeds of this funding round will be used to accelerate GoMechanic’s growth and expansion in tier-2 and tier-3 cities in India, for ramping up the technology team and launching operations in international markets.
“We are thrilled to welcome Tiger Global as our partner at the cusp of our next phase of growth. 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,” said GoMechanic founders in a statement.
The fundraising also includes a $5 million buyback of ESOPs of the early employees of GoMechanic. The company will take its presence from the current 35 cities to 100+ cities in India and triple the technology team size from the current 60.
Prior to this round, GoMechanic had raised a total of $21 million from Sequoia Capital India, Orios Venture Partners and Chiratae Ventures. Earlier in 2020, Pawan Munjal, CMD & CEO, Hero Motocorp invested an undisclosed amount in the company. GoMechanic has defined the much necessary MRP in the industry, ushered in transparency and easy availability of genuine spare parts and is now set to cater to a set of new customers in India and overseas.
“Since Sequoia Capital India first partnered with GoMechanic in 2018, the company has had a very strong growth trajectory. It has expanded geographically to several cities and made a deep foray into spares which is a $7 billion opportunity with large profit pools. The team has also deployed tech across the value chain exceptionally well. This additional growth capital will enable the company to grow faster and tap into newer opportunities,” said Abhishek Mohan, principal, Sequoia India.
“India is the 5th largest auto-market globally. As it has happened in other industries, digitization and changing consumer trends will have an impact on the way products and services are consumed in this sector. Delivering personalized experiences to the end consumer while standardizing the processes on the supply side through technology will enable GoMechanic to become the breakout brand,” said Ranjith Menon, Executive Director of Chiratae Ventures.
GoMechanic was founded by Kushal Karwa, Amit Bhasin, Rishabh Karwa and Nitin Rana. Currently, it has over 600 car repair workshops across 35 cities in India, including Delhi-NCR, Hyderabad, Mumbai, Pune, Bengaluru, Chennai and Kolkata. It currently services more than two million cars annually and is targeting 10 million customers by 2021.