GoMechanic raises $42 million in Series C funding led by Tiger Global, Sequoia Capital

Founded by Kushal Karwa, Amit Bhasin, Rishabh Karwa and Nitin Rana in 2016, GoMechanic promises doorstep pickup and drop.

Technology-enabled car service startup GoMechanic said on June 23 that it had raised $42 million in Series C funding led by Tiger Global with existing investors Sequoia Capital India, Orios Venture Partners and Chiratae Ventures investing as well.

Founded by Kushal Karwa, Amit Bhasin, Rishabh Karwa and Nitin Rana in 2016, GoMechanic promises doorstep pickup and drop, tracking your car service real time and is trying to digitise a fundamentally offline industry.

The money will be used to expedite the company’s growth and expansion in Tier 2 and 3 cities in India. It currently has over 600 car repair workshops across 35 cities in India, including Delhi-NCR, Hyderabad, Mumbai, Pune, Bengaluru, Chennai and Kolkata. It currently services over two million cars a year and is targeting 10 million customers by 2021.

“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,” the founders said in a joint statement.

“Since Sequoia Capital India first partnered with GoMechanic in 2018, the company has had a very strong growth trajectory. This additional growth capital will enable the company to grow faster and tap into newer opportunities,” said Abhishek Mohan, Principal at Sequoia India.

Digitising the car buying and maintenance experience has been a big theme for investors in the last few years. Moneycontrol reported on May 15 that Tiger is in talks to lead a $100 million round in used car retailer Spinny, valuing it at $800 million.

“The servicing and repairing of cars has been operating on the same model since World War II, alongside an exorbitantly priced system of spare parts & 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,” said Rehan Yar Khan, managing partner at Orios Venture Partners.