Car servicing startup GoMechanic, which was acquired by the Lifelong Group last year in a fire sale after co-founders admitted to fudging numbers, claims to have achieved operational profit in the first financial quarter of FY25 under new management.
Founded in 2016, the New Delhi-headquartered GoMechanic was embroiled in a major controversy after its founders were found to have inflated revenue figures, created fictitious garages, and attempted to raise new funding under false pretenses.
Following an investors’ probe, the startup was put up for a slump sale and was finally acquired by Lifelong Group’s subsidiary Servizzy, a Gurugram-based car servicing startup.
In FY24, the firm’s topline revenue stood at Rs 210 crore, which came from services, spares, and accessories, while it posted Rs 85 crore in the April-June quarter.
The startup claims to service over 30,000 cars every month and has expanded to over 600 service workshops across more than 50 cities.
In the last year, it claims to have launched specialised programs to cover services for luxury cars, extended warranty for car owners, and service for electric vehicles.
"We have managed to strike a balance between profitability and growth, ensuring that we continue to provide exceptional service to our customers while expanding our footprint. Our aim is to service 1 out of 10 cars in the country by FY 2027, and by then, we plan to be present in over 1,000 cities across India," GoMechanic Co-Founder and CEO Himanshu Arora said.
Servizzy was founded by Arora and Muskan Kakkar in 2020. Post acquisition and rebranding of GoMechanic, the duo has been at the helm of operations at the firm.
Besides Lifelong Group, investors like Hero Enterprise and Stride Ventures are currently backing the venture. In November 2023, GoMechanic had raised $6 million in a funding round led by an undisclosed investor and its existing shareholders.
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