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GoMechanic closes Series C round at $42 mn, allocates $5 mn for ESOP buyback

GoMechanic closes Series C round at $42 mn, allocates $5 mn for ESOP buyback
Photo Credit: Pexels
23 Jun, 2021

Automobile servicing platform GoMechanic closed its Series C funding round at $42 million (Rs 352 crore), it said in a statement on Wednesday. The round was led by alternative investment firm Tiger Global Management. 

Sequoia Capital India, Orios Venture Partners and Chiratae Ventures were returning investor in the round. 

Earlier this month, TechCircle reported, citing regulatory filings, that Targetone Innovations, the Gurugram based company that owns and operates GoMechanic, had pulled in $34 million as part of the same Series C round.  

GoMechanic will use the fresh capital to boost its growth in the tier II and III cities in the country, it said in the statement. The company aims to increase its presence from 35 cities at present to over 100 cities. Part of the funds will also be deployed to ramp up its technology team and launch operations in  international markets. It currently has a technology team of 60.  

The fundraise also includes a $5 million buyback of employee stock ownership plans (ESOPs) of early employees, it said.  

Founded in 2016 by Amit Bhasin and Kushal Karwa, the company provides services such as car maintenance, cleaning, wheel and rim care and denting services. The startup says it seeks to organise the car servicing market through its technology platform. It currently services more than 2 million cars annually and is targeting 10 million customers by 2021. 

Prior to this round, GoMechanic raised $14.7 million in a Series B round in December 2019. In January 2019, it raised $4.9 million in a Series A round led by Sequoia and Orios Venture Partners. 

In 2017, the company acquired car servicing and repair startup VOW CarClinic, taking on board all its customers, technology assets and service partners.