New Delhi: GoMechanic, an Indian start-up in the automobile service and repair industry, has been acquired by a consortium led by Lifelong Group, a Singapore-based consumer electronics and appliances company.
The acquisition comes at a time when GoMechanic was facing financial distress. The startup admitted “grave errors” in financial reporting. It had to scale down operations and was unable to raise funds from investors.
GoMechanic was founded in 2016 by four young entrepreneurs who saw an opportunity in India’s unorganized automobile service market. The start-up aimed to offer affordable and reliable car repair and maintenance services to customers.
The company quickly gained popularity among car owners in India due to its use of technology to streamline the repair and maintenance process and its network of high-quality service centers. The start-up also partnered with major automobile manufacturers such as Maruti Suzuki and Hyundai to offer warranty-compliant services.
However, like many businesses in the automobile industry, GoMechanic was hit hard by the COVID-19 pandemic. The lockdowns and restrictions imposed by the Indian government severely affected the company’s revenue and forced it to scale down operations.
The Lifelong Group-led consortium has acquired GoMechanic with the aim of reviving the start-up and expanding its operations. The consortium plans to invest in technology and infrastructure to enhance GoMechanic’s service offerings and increase its reach.
According to the Lifelong Group, the acquisition of GoMechanic aligns with its strategy to expand its presence in the Indian market and diversify its business portfolio. The company sees potential in the Indian automobile service and repair market, which is expected to grow significantly in the coming years.
