New Delhi, March 29 (SocialNews.XYZ) Sequoia India-backed online vehicle repair platform GoMechanic, which went through a saga of misrepresenting facts, errors in financial reporting and the subsequent layoff of 70 per cent of its workforce, has been acquired by a consortium led by auto components maker Lifelong Group.
The distressed startup was last valued at $30 million.
"Acquisition of the GoMechanic business, aligns with our strategic vision of synergising the Lifelong Group's proven expertise in the automotive industry. We are focused on building upon GoMechanic's business," Lifelong Group said in a statement.
New Delhi-headquartered Lifelong Group services the likes of General Motors and Hero, among others.
In FY22, GoMechanic reported losses of Rs 114 crore on operating revenues of Rs 90.5 crore, according to the company's filings.
GoMechanic operates 800 workshops and serviced 30,000 vehicles in January this year.
In January, GoMechanic laid off 70 per cent of its workforce as the startup struggles to raise funds amid serious concerns of accounting troubles.
The company asked the remaining staff to work without pay for three months.
For over a year, GoMechanic has been struggling to raise funds, despite advanced-stage discussions with several investors.
GoMechanic was founded in 2016 by Amit Bhasin, Kushal Karwa, Nitin Rana, and Rishabh Karwa.
Source: IANS
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