GoMechanic, the Indian startup that provides online car repair and maintenance services, has been acquired by CarTrade, India’s leading online auto marketplace. The acquisition comes as a major relief for GoMechanic, which has been struggling financially for the past few years.
According to reports, CarTrade has acquired GoMechanic in a deal that values the startup at over $30 million. As part of the deal, CarTrade will take over GoMechanic’s operations, and the startup’s founders will join CarTrade’s leadership team.
GoMechanic was founded in 2016 by four IIT Delhi alumni – Amit Bhasin, Kushal Karwa, Nitin Rana, and Rishabh Karwa – with the aim of providing affordable and convenient car repair and maintenance services to car owners. The startup operates through a network of over 400 workshops across 35 cities in India, and claims to have serviced over 1 million cars to date.
Despite its promising start, GoMechanic has faced a number of challenges in recent years, including fierce competition from other startups in the space, high operational costs, and a shortage of funding. The startup was reportedly running low on cash and struggling to pay its employees, which led to concerns about its long-term viability.
The acquisition by CarTrade is expected to provide GoMechanic with the financial stability and resources it needs to continue growing and expanding its operations. For CarTrade, the acquisition is seen as a strategic move that will help the company diversify its offerings and strengthen its position in the Indian auto market.
Speaking about the acquisition, CarTrade CEO Vinay Sanghi said, “We are excited to bring GoMechanic into the CarTrade family. GoMechanic has built a strong brand and a loyal customer base, and we believe that by integrating their offerings into our platform, we can offer our customers a more comprehensive and convenient car ownership experience.”
The acquisition of GoMechanic is the latest in a series of moves by CarTrade to expand its presence in the Indian auto market. Last year, the company acquired rival online auto marketplace CarWale in a deal worth over $90 million, and has since been working to integrate the two platforms.
Despite the challenges faced by GoMechanic, the acquisition by CarTrade is a sign of the growing importance of online car repair and maintenance services in India. With more and more consumers turning to online platforms for their car-related needs, startups like GoMechanic are poised to play a key role in shaping the future of the Indian auto industry.