GoMechanic said it reported revenue to the tune of INR 210 Cr from services, spares, and accessories in FY24
The startup claims to have expanded its network to more than 600 service workshops across more than 50 cities in the past financial year
Servizzy acquired the startup in a fire sale in a deal pegged at INR 220 Cr after cofounder Bhasin publicly admitted to fudging numbers
Car servicing startup Gomechanic
claimed that it turned earnings before interest, tax, depreciation, and amortisation (EBITDA)-positive in the first quarter of the fiscal year 2024-25 (FY25).
In a statement, the startup said it clocked a revenue of INR 85 Cr in the first quarter of the ongoing fiscal year.
GoMechanic also said that its revenue has jumped three-fold post acquisition by Servizzy in March last year. The startup said it reported revenue to the tune of INR 210 Cr from services, spares, and accessories in FY24.
It also claimed to have expanded its network to more than 600 service workshops across more than 50 cities in the past financial year, catering to over 30,000 cars every month. The startup said it has achieved a 50% repeat customer rate in the last fiscal.
“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 FY27, and by then, we plan to be present in over 1,000 cities across India,” said GoMechanic cofounder and CEO Himanshu Arora.
What also seems to have worked in favour of GoMechanic is the rapid scaling up of its new offerings. The company said that its accessories vertical reported a revenue of INR 11.2 Cr in Q1 FY25, accounting for more than 13% of its aforementioned INR 85 Cr topline.
Additionally, it opened 11 Luxe stores, offering servicing to luxury cars, in FY24. It also plans to open electric vehicle (EV)-focussed service centres across Delhi, Mumbai, Bengaluru, Hyderabad, and Chennai going forward to bolster its numbers.
The turnaround comes a year after Lifelong Group’s subsidiary Servizzy acquired the startup in a fire sale in a deal pegged at INR 220 Cr.
Originally founded in 2016 by Amit Bhasin, Kushal Karwa, Nitin Rana and Rishabh Karwa, GoMechanic landed in trouble last year after cofounder Bhasin publicly admitted to fudging numbers, which led to an investor-led forensic audit into the company.
The cofounders allegedly falsified bank statements, inflated revenues, and syphoned off money as early as GoMechanic’s seed funding round in 2017.
Afterwards, the Economic Offences Wing (EoW) of the Delhi Police registered an FIR against the four original cofounders and key management personnel (KMP) for alleged fraud and cheating based on a complaint filed by GoMechanic’s key investors in June 2023.
In March 2023, Arora and Muskan Kakkar took over the operations of the startup. In November last year, the startup raised $6 Mn in a round led by an undisclosed family office, which also saw participation from other existing investors, including Stride Ventures.
