Automobile service and maintenance startup GoMechanic announced that it has raised $14.7 Mn (INR 105 Cr) in a Series B led by Chiratae Ventures and Sequoia Capital. The funding round also saw participation from existing investor Orios Venture Partners.
The company will be utilising the funds to scale up its operations and expand its presence across other geographies pan-India.
Gurugram-based GoMechanic was founded in 2016 by Amit Bhasin and Kushal Karwa. Currently, the company runs over 215 workshops in nine cities. In the coming days, it plans to expand to about 30 cities and aims to scale its workshop network to 1000 partners by 2021. GoMechanic is backed by Sequoia Capital, Orios Ventures Partners, Snapdeal founders Kunal Bahl and Rohit Bansal, and angel investor Dhianu Das.
Previously, the company had raised $4.9 Mn (INR 35 Cr) in a Series A round led by Sequoia Capital and Orios Venture Partners in January. GoMechanic is working to organise the unorganised car repair and servicing industry by leveraging technology and infusing skill sets as per the growing demand and standards of the industry. It claims that car owners can avail repair services at rates that are about 40% lower than those of regular garages and workshops in the organised market.
According to the IBEF report, the automobile industry in India is the seventh-largest manufacturer of commercial vehicles in the world. The automotive industry is expected to reach $251.4 to $282.8 Bn (INR 16.16 to 18.18 Tn) by 2026. In the car repair and maintenance is an untapped market, and a lot of startups are venturing into the space including Cartisan, Bumper, CleanseCar, Mind Your Fleet, SparesHub, BookMyTime among others.
CleanseCar raised $2 Mn in Pre Series A round from ten investors including Haldiram’s Family Office, Venture Catalysts founder Apoorv Ranjan Sharma and Swiggy CFO Rahul Bothra among other investors. Last year, Gurugram-based Droom had raised $30 Mn in a Series E funding round led by the family of Joe Hirao, founder of ZIGExN and others.