Multi-brand car workshop and spare parts platform GoMechanic has raised $35 million in its Series C round led by Tiger Global Management. The Gurugram-based company was in talks with a couple of blue-chip investors, including the New York-based hedge fund, to score a big round.
GoMechanic’s board has approved the allotment of 4,722 Series C preference shares at an issue price of Rs 541,061 to raise Rs 255.5 crore or $35 million, regulatory filings show. According to Fintrackr’s estimates, GoMechanic has been valued in the range of $315-320 million post the allotment of fresh shares, reported Entrackr.
Tiger Global spearheaded the financing with a $26.3 million investment. Existing investors Sequoia Capital, Orios Venture Partners, and Chiratae Ventures have invested $4.3 million, $2.6 million, and $1.7 million respectively.
The fresh round takes the total investment in GoMechanic to $55 million to date. Previously, it had raised $20 million across two institutional rounds from Sequoia, Chiratae, Orios, and individuals including Pawan Munjal, Kunal Bahl, Rohit Bansal, and Dhianu Das.
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Started by Kushal Karwa, Amit Bhasin, Rishabh Karwa, and Nitin Rana in 2016, GoMechanic offers doorstep pickup and delivery of vehicles for repair and service. It runs a network of franchise-owned stores which is operated and controlled by the company. The startup also works with existing car repair garages around the country and provides them with an inventory of spare parts. It claims to have over 500 service partners on its platform and serviced over 2 million cars.
The company, which competes with Blume Ventures-backed Pitstop, myTVS, and Crossroads, among others, claims that its repair services are 40% cheaper than what is offered by auto manufacturers and other businesses in the organized repair market.
The high-profile VC firm Tiger Global invested USD 586 million across 21 deals in 2020, which earned it the top VC spot in the country, in terms of deal value, according to India Venture Capital Report 2021, published earlier in March. Of these, seven were USD 100-million plus funding deals, including fantasy sports firm Dream11, Byju’s, fintech giant Razorpay, and ed-tech startup Vedantu.