Will GoMechanic succeed where everyone else failed?
Servicing automobiles is an age-old business. Does going online make it more profitable or efficient enough for a venture investor to smell disruption?
Why read this story?
Editor's note: It is a little difficult to explain why anyone would cough up $60 million to invest in a business that services automobiles. Almost everything about it feels brick and mortar. More often than not, this does not fit the investing thesis of venture investors on the lookout for startups which can disrupt existing industries using technology. And yet GoMechanic has pulled off this remarkable fundraising feat. Founded in 2016 by Kushal Karwa, Amit Bhasin, Rishabh Karwa and Nitin Rana, GoMechanic has raised close to $60 million from some marquee investors, including Tiger Global, Sequoia Capital India, Orios Venture Partners and Chiratae Ventures. Hero MotoCorp CEO and managing director Pawan Munjal also invested an undisclosed amount in 2020. As you read this, the company is in talks to raise another round of funding from Tiger Global at a valuation upwards of $1 billion. Contrary to the impressive fundraising feat, GoMechanic’s numbers aren’t much to go by. As of March 2022, the company (incorporated as Targetone Innovations Pvt Ltd) reported a revenue of Rs 34 crore with a loss of Rs 27 …
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