GoMechanic’s working capital crisis

The car repair startup has not paid workshops and laid off around 30% employees as it waits for its next fundraise.

GoMechanic is struggling. Unpaid dues to partner workshops, layoffs and a desperate wait for the next fundraise outline the many troubles of the car servicing and repairs startup.

The Gurugram-based company has not been able to make payments to its workshops in the last few months. At least five GoMechanic workshops we visited say their money is stuck with the company. Two workshops have even pulled out of the partnership owing to payments issues. The owners of two other workshops add that they have been told by the company that payments will be settled once the funds come in. 

GoMechanic …

Author

Samiksha Goel

Samiksha covered all things startups at The Morning Context. She joined us from The New Indian Express, where she wrote stories on the retail and food sectors. Prior to that, she had covered startups and written various business features in the Deccan Herald.

Writer

samiksha@mailtmc.com

Bengaluru