Beleaguered GoMechanic Acquired By Lifelong Group-Led Consortium
The development comes roughly two months after founders of GoMechanic admitted to "grave errors" in financial reporting.
Beleaguered car service aggregator GoMechanic has been acquired by a consortium led by original equipment manufacturer Lifelong Group and premium car service startup Servizzy.
The development comes roughly two months after the founders of Gurugram-based GoMechanic admitted to "grave errors" in financial reporting. The startup had laid off close to 70% of its workforce and said they would "restructure the business while looking for capital solutions".
"Due to the recent financial difficulties at GoMechanic, the board and shareholders, with support from Stride Ventures, initiated a speedy and widely publicised sale process to ensure the continuity of business," the Lifelong Group said in a press release on Wednesday. "The Servizzy consortium, to be led by the Lifelong Group, emerged as the strongest bid in this process for the acquisition of GoMechanic."
The transaction will assist in preserving the GoMechanic ecosystem at large and also enable providing a continued livelihood to its employees, the consortium said.
The 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 on GoMechanic's business journey and will continue revolutionising the Indian automotive service and repair industry," said an official spokesperson for the Lifelong Group.
Lifelong Group is a Delhi-based auto parts and medical device maker and has clients such as General Motors India Pvt., Hero MotoCorp Ltd., and LeGrand & Co.
Servizzy is a Gurugram-based startup that operates tech-enabled, multi-brand car service centres in 15 cities.