GoMechanic Secures $42 Mn Series C Funding
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Technology-enabled auto aftersales service and spare parts company GoMechanic on Wednesday announced securing $42 million in Series C funding in a round led by Tiger Global Management with the existing investors Sequoia Capital India, Orios Venture Partners and Chiratae Ventures participating. It is the fourth round of institutional funding for GoMechanic.
“We are thrilled to welcome Tiger Global as our partner at the cusp of our next phase of growth. The current fundraise is further validation of the hard work put in by the GoMechanic team over the last 5 years and further cements our position as the indisputable market leader in the auto aftermarket ecosystem. 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 Kushal Karwa, Amit Bhasin, Rishabh Karwa; Nitin Rana, co-founders, GoMechanic.
The proceeds of this funding round will be used to accelerate GoMechanic’s growth and expansion in tier-II and tier-III cities in India, ramping up the technology team and launching operations in the international markets.
“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,” shared Abhishek Mohan, Principal, Sequoia India.
The fundraising also includes a $5 million buybacks of ESOPs of the early employees of GoMechanic. GoMechanic will take its presence from the current 35 cities to over 100 cities in India and triple the technology team size from the current 60.
“The servicing and repairing of cars have been operating on the same model since World War II, alongside an exorbitantly priced system of spare parts and accessories. We believe that car ownership should be a joy and in GoMechanic we found a team that shared that vision. We invested with them at Seed and every round after and are delighted to see the heights they have taken the space to. We welcome Tiger Global, on this mission to transform car ownership experience with more smiles per mile," noted RehanYar Khan, managing partner, Orios Venture Partners,
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, chairman, managing director, and chief executive officer, Hero Motocorp invested an undisclosed amount in the company. GoMechanichas 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.
“We continue to be excited about the vision GoMechanic team has set for themselves. 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,” added Ranjith Menon, executive director, Chiratae Ventures.
Avendus was the exclusive financial advisor to the transaction.