GoMechanics startup raised $42 million, led by Tiger Global

Currently, GoMechanic has over 600 car repair workshops and the firm services over two million cars every year. The startup has planned to target 10 million customers by 2021.

GoMechanic, the spare parts and multi brand car workshop has raised $42 million in Series C Funding round led by the Tiger Global Management, with Sequoia Capital India, Orios Venture Partners and Chiratae Ventures participating in the round.

GoMechanic which is run by Targetone Innovations Pvt Ltd, would use the fourth round of funding for expansion in Tier II and Tier III cities in India and also launch operations in the international markets. The firm provides their services in 35 cities . The goal of the firm has been to operate in more than 100 cities and triple the team size of 60 people.

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The founders of GoMechanic said in a statement that they were thrilled to welcome Tiger Global as our partner at the cusp of their next phase of growth. They would continue to invest in expanding our operations and spare parts supply chain in India while also exploring global opportunities. Their intention was to make India the innovation hub in auto aftermarket technology and services similar to how it had become a manufacturing hub for a lot of global auto players.

The five year old startup had raised close to $59.8 million with Hero MotoCorp’s CEO and MD Pawan Munjal also investing in the firm.

The Gurugram based GoMechanic was founded in 2016 by Kushal Karwa, an MBA graduate from Indian Institute of Management (Ahmedabad), Amit Bhasin, Rishabh Karwa, and Nitin Rana.

Abhishek Mohan, Principal, Sequoia India, said that the firm had expanded geographically to several cities and made a deep foray into spares which was a $7 billion opportunity with large profit pools. The team had also deployed tech across the value chain exceptionally well. He also said that the additional growth capital would enable the company to grow faster and tap into newer opportunities.

Currently, GoMechanic has over 600 car repair workshops and the firm services over two million cars every year. The startup has planned to target 10 million customers by 2021.