GoMechanic, the technology-enabled auto after-sales service and spare elements firm, has secured $42 million in Sequence C funding in a spherical led by Tiger World Administration with the present buyers Sequoia Capital India, Orios Enterprise Companions & Chiratae Ventures additionally collaborating.
It’s the fourth spherical of institutional funding for GoMechanic. The proceeds of this funding spherical can be used to speed up GoMechanic’s development and enlargement in tier-2 and tier-3 cities in India, for ramping up the expertise staff and launching operations in worldwide markets.
“We’re thrilled to welcome Tiger World as our accomplice on the cusp of our subsequent part of development. We’ll proceed to put money into increasing our operations and spare elements provide chain in India whereas additionally exploring international alternatives. Our intention is to make India the innovation hub in auto aftermarket expertise and providers just like the way it has develop into a producing hub for lots of worldwide auto gamers,” mentioned GoMechanic founders in an announcement.
The fundraising additionally features a $5 million buyback of ESOPs of the early staff of GoMechanic. The corporate will take its presence from the present 35 cities to 100+ cities in India and triple the expertise staff dimension from the present 60.
Previous to this spherical, GoMechanic had raised a complete of $21 million from Sequoia Capital India, Orios Enterprise Companions and Chiratae Ventures. Earlier in 2020, Pawan Munjal, CMD & CEO, Hero Motocorp invested an undisclosed quantity within the firm. GoMechanic has outlined the a lot needed MRP within the trade, ushered in transparency and simple availability of real spare elements and is now set to cater to a set of latest clients in India and abroad.
“Since Sequoia Capital India first partnered with GoMechanic in 2018, the corporate has had a really robust development trajectory. It has expanded geographically to a number of cities and made a deep foray into spares which is a $7 billion alternative with giant revenue swimming pools. The staff has additionally deployed tech throughout the worth chain exceptionally properly. This extra development capital will allow the corporate to develop quicker and faucet into newer alternatives,” mentioned Abhishek Mohan, principal, Sequoia India.
“India is the fifth largest auto-market globally. Because it has occurred in different industries, digitization and altering shopper tendencies will have an effect on the best way services and products are consumed on this sector. Delivering customized experiences to the tip shopper whereas standardizing the processes on the provision facet via expertise will allow GoMechanic to develop into the breakout model,” mentioned Ranjith Menon, Government Director of Chiratae Ventures.
GoMechanic was based by Kushal Karwa, Amit Bhasin, Rishabh Karwa and Nitin Rana. At the moment, it has over 600 automobile restore workshops throughout 35 cities in India, together with Delhi-NCR, Hyderabad, Mumbai, Pune, Bengaluru, Chennai and Kolkata. It at the moment providers greater than two million automobiles yearly and is focusing on 10 million clients by 2021.