Car servicing startup GoMechanic claims its EBITDA to have turned positive in the first quarter of the ongoing fiscal year. The startup’s revenue was noted at Rs 85 crore in the same period, rising by three times after the acquisition by Lifelong Group’s subsidiary Servizzy in a fire sale at Rs 220 in March 2023. For FY24, its revenue amounted to Rs 210 crore from services, spares, and accessories.
The company claims to have extended its network to over 600 service workshops spread across 50 cities, servicing more than 30,000 cars in the previous financial year, also achieving a 50% repeat customer rate in the same period. It raised $6 million in funds led by an undisclosed family office along with existing investors such as Stride Ventures in November 2023.
The startup made Rs 11.2 crore from accessories vertical which is 13% of the total revenue in Q1 FY25. It opened 11 Luxe stores for luxury car service in FY24 and further aims to kickstart EV-centric service centers across megacities Mumbai, Delhi, Bengaluru, Chennai, and Hyderabad.
GoMechanic cofounder and CEO Himanshu Arora said, “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.”
The car servicing startup was founded by Amit Bhasin, Kushal Karwa, Nitin Rana, and Rishabh Karwa in 2016. An investor-led forensic audit was initiated into the company when the cofounders admitted to falsifying bank statements & inflated revenues, and syphoning off money from the onset of the seed funding round in 2017.
An FIR with Economic Offences Wing of Delhi Police was filed against the four along with key management personnel for fraud by the company’s investors in June 2023. Arora and Muskan Kakkar had already taken over the startup’s operations in March last year.
