In a series C financing round led by Tiger Global, GoMechanic has raised $42 million. The current fundraising event also includes a $5 million buyback of the employee stock ownership plan (ESOP) of the early employees of GoMechanic.
Details About Current Funding Round
On Wednesday, online automobile repair service provider GoMechanic has revealed that it has collected $42 million in the Series C financing round led by New York-based Tiger Global Management. Existing investors including Sequoia Capital India, Orios Venture Partners, and Chiratae Ventures were also part of the latest funding event.
A few weeks back, some financial experts posted about Tiger Global’s $100 million investment in GoMechanic.
This is the fourth financing round concluded by the Gurugram based car repair startup. With the current funding, GoMechanic plans to expand its operations in more tier-II and tier-III cities. The startup also plans to hire more technology staff to serve its customers better. GoMechanic is also looking to launch its operations in the global market.
Current funding also includes a $5 million buyback of employee stock ownership plan (ESOP) of the early staff of GoMechanic.
Talking about the latest institutional round, the founders of GoMechanic released a common statement. They stated:
“We are thrilled to welcome Tiger Global as our partner at the cusp of our next phase of growth. The current fundraiser is further validation of the hard work put in by the GoMechanic team.”
They further added:
“We will continue to invest in expanding our operations and spare parts supply chain in India while also exploring global opportunities.”
What Investors Think about GoMechanic?
Currently, GoMechanic has a strong presence In 35 cities. The startup has ambitious plans to reach 100 cities and wants to grow the technology team by three folds.
Sequoia Capital is one of the early investors in GoMechanic. Talking about the Sequoia-GoMechanic partnership since 2018, Abhishek Mohan, principal, Sequoia India said:
“Since Sequoia Capital India first partnered with GoMechanic in 2018, the company has had a 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.”
Including the current round, GoMechanic has raised a total of $63 million from Tiger Global, Sequoia Capital India, Orios Venture Partners, and Chiratae Ventures. In 2020, Pawan Munjal, Chairman, MD & CEO, Hero Motocorp also invested in the startup but that amount is undisclosed till now.
Chiratae Ventures also praised the current operations and the vision of GoMechanic. Talking about the startup further, Ranjith Menon, executive director of Chiratae Ventures said:
“We continue to be excited about the vision GoMechanic team has set for themselves. India is the fifth-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.”
He further added:
“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.”
Currently, GoMechanic has established over 600 car repair centers in 35 major cities, including Delhi, Noida, Gurugram, Hyderabad, Mumbai, Kolkata, and others. As per the startup’s claim, it provides services to over 2 million cars every year. In 2021, GoMechanic targets 10 million users.