If you are a car owner, then you know how difficult it is to get the right car service. Most of the time, service providers cheat the car owners in doing the maintenance and replacing the spare parts. To avoid low-quality car service, people choose authorized service centers instead of low-budget local mechanic service due to the uncertainty and lack of transparency in the latter one.
Authorized car center services are good, but it’s costly and not available everywhere. Also. authorized service centers are so busy that you have to wait at least 2-3 days to get your turn. To address these problems, GoMechanic launched online services in 2016. The startup was co-founded by Nitin Rana, Amit Bhasin, Rishabh, and Kushal Karwa.
Initial Journey of GoMechanic
Founded in April 2016, GoMechanic solved two major problems in the automobile service area. First, the startup used technology to provide cost-effective, quick, and reliable services to its users. Second, the firm helped local service providers by or providing them service training and genuine spare parts.
Talking about the uniqueness of the startup, Nitin Rana, co-founder of GoMechanic, said:
“It’s an online platform where people can book quick, affordable, and quality servicing of their cars.”
GoMechanic is a Gurugram based startup. The initial journey for the startup was not easy. The firm faced a lot of difficulties in acquiring customers. Due to the newly launched firm, car owners and business firms did not trust them. But the co-founders kept doing hard work. And, finally, the startup got a breakthrough after 6 months.
Talking about the breakthrough, Rishabh Karwa, co-founder of GoMechanic said:
“The first six months were tough, but we made a breakthrough with our contract with Uber for 2,500 cars in Delhi-NCR.”
Funding is one of the most important fuels to grow the startup. Sequoia Capital was the first investment firm that showed trust in GoMechanic operations.
Talking about Sequoia’s partnership with GoMechanic, Abhishek Mohan, vice president, Sequoia Capital India said:
“Sequoia India first invested in GoMechanic a year ago. We found the idea of organizing the fragmented multi-billion dollar car repair industry fascinating. The company has grown manifold since then, earning the trust of thousands of car owners. We are excited about its future as it expands to new cities and launches additional business lines.”
Funding, Valuation, Growth, and Future Plans of GoMechanic
In the series A funding round, GoMechanic raised ₹35 crores in a Series A financing round in 2019. The round was led by Sequoia Capital and Orios Venture Partners. It further raised ₹105 crores from Chiratae Ventures and their existing investors.
As per the entrackr report, on June 7, 2021, GoMechanic raised $35 million in a Series C funding round from Tiger Global, a New York-based investment firm.
Overall, the startup has raised $55 million in three major rounds. Sequoia India, Tiger Global, Chiratae Ventures, and Orios Venture Partners are the main investors of GoMechanic.
With the help of the current funding round, GoMechanic valuation has surged to around $320 million.
As per GoMechanic claims, the startup has successfully provided services to more than 2 million cars till now. By the end of 2021, the startup plans to serve 10+ million cars. And also, it has collaborated with 500 service partners nationally.
GoMechanic is currently one of the fastest-growing online auto service platforms. Currently, the startup has a strong presence in over 12 major cities of India including Delhi, Mumbai, Pune, Hyderabad, Bengaluru, and Jaipur.
Overall, the startup has a strong presence in 50+ cities including Tier 1, Tier II, and Tier III cities.
Talking about the plans, Karwa said:
“In five years, we plan to expand on a full-stack workshop network model, where you can find a GoMechanic Service Centre, our branded workshops, within a 5 km radius in every Tier I and II city. This will change the ecosystem in which car maintenance and service is handled and position us in a segment where we can embrace the future of electric cars.”
GoMechanic Launches GoPreneur Project
The startup launched a unique initiative called Gopreneur to provide jobs. It is also an initiative to help the Indian Government’s AtmaNirbhar Bharat mission.
On 23rd January 2021, GoMechanic held 3 days Gopreneur workshop at its Gurugram head office.
Rakesh Sidana, the AVP-Spares in GoMechanic, launched this project to help Indians who lost their jobs due to pandemic. The program welcomes auto service providers, independent mechanics, and mechanical engineer experts to start their auto service business in collaboration with GoMechanic.
Talking about Gopreneur, Sidana said:
“This project was started when the world was uncertain about future jobs. I always believe in the spirit of entrepreneurship to create jobs in India. This project has made that possible to create self-employment by leveraging the strength and values of GoMechanic.”
With the help of this project, the firm has expanded its operations in 35 tier II and tier III cities including Siliguri, Waluj, Nanded, Parbhani, Manipur, Jamnagar, Amravati, Kota, Anand, Raipur, Solapur, Latur, Mehsana, Aurangabad, Gorakhpur, Nagpur, Indore, Bhopal, Nashik, Bhubaneswar, Jamshedpur, Madurai, Cuttack, Coimbatore, Surat, Trivandrum, Jaipur, Mangalore, Ahmedabad, Jabalpur, Mohali, Vadodara, Coimbatore, Varanasi, Lucknow.
GoMechanic plans to establish itself in 1000 cities through this project.
In the Gopreneur meet, Nitin Rana, co-founder of GoMechanic addressed the trainers and cleared their doubts about the future.
“A typical Gopreneur is a young, enthusiastic individual in Tier 2 or Tier 3 city, a dreamer who wishes to be an entrepreneur but either lacks a sustainable idea or doesn’t have enough money to invest. GoMechanic wants to empower the youth with technical and sales training to become independent and self-employed. We are fully committed to expanding this program to at least 1000 cities. This program takes us a step closer to our ultimate goal of becoming the largest aftermarket automotive company in the country.”