Car servicing startup GoMechanic announced on Wednesday that it has raised $42 Mn in Series C round. The fresh fund infusion has further consolidated Delhi-based startup’s reputation as one of the most well-funded startups in the car-servicing space.
By the way, Tiger Global has the led the Series C round to continue with its ongoing funding frenzy. Existing investor Sequoia Capital was the second biggest contributor to the funding tranche. Orios Venture and Chiratae Ventures were among other existing investors that pumped capital in the series C round.
GoMechanic did not shed light on the market valuation it commanded in the latest round.
The startup said that it will use the funds for expanding its presence across tier-2 and tier-3 cities. It claims to have over 600 car repair workshops across 35 cities in India and further claims to service over two million cars per year. The company is aiming to on-board nearly 10 Mn by end of 2021.
Car servicing is fundamentally an offline industry and GoMechanic is seeking to overhaul this by trying to digitize it. Besides, like other industries, India’s car servicing industry is also highly unorganized industry.
The on-boarding of a VC giant and high-profile investor like Tiger Global will surely give GoMechanic a decisive advantage in the long run visa via its other competitors. The startup mainly competes with Pitstop and Pit Crew. The former had raised $3.5 Mn in pre-series B funding round led by Ventureeast.